11 brokerage houses fined
Thursday, 24 March 2011
FE Report
The securities regulator has fined Tk 0.10 million each to 11 brokerage houses who illegally lent margin loans to their clients to buy Z-category shares, officials said. The Securities and Exchange Commission (SEC) Tuesday slapped the fine on the brokerage companies at a commission meeting, chaired by SEC Chairman Ziaul Haque Khondker. The SEC says the wrongdoing triggered abnormal rise in the share prices of Z-category companies. Last year, the SEC carried out an investigation against some brokerage firms, which breached securities laws by lending margin loans to their clients in purchasing Z-category shares. Finally, the SEC served show-cause notices on 23 brokerage firms after getting evidences.
The securities regulator has fined Tk 0.10 million each to 11 brokerage houses who illegally lent margin loans to their clients to buy Z-category shares, officials said. The Securities and Exchange Commission (SEC) Tuesday slapped the fine on the brokerage companies at a commission meeting, chaired by SEC Chairman Ziaul Haque Khondker. The SEC says the wrongdoing triggered abnormal rise in the share prices of Z-category companies. Last year, the SEC carried out an investigation against some brokerage firms, which breached securities laws by lending margin loans to their clients in purchasing Z-category shares. Finally, the SEC served show-cause notices on 23 brokerage firms after getting evidences.