BB issues showcause notice on One Bank chairman
FE Report | Thursday, 5 June 2008
The central bank Wednesday issued a showcause notice on the chairman of the One Bank Limited, Sayeed Hossain Chowdhury, for allegedly holding shares in fictitious names.
It also asked the managing director of the bank for taking necessary measure to suspend trading of more than 25 per cent sponsor shares on the stock exchanges until further instruction.
"We, in a separate letter, have also asked the managing director of the One Bank to take steps for suspension of trading of the shares in the stock markets," a BB senior executive told the FE.
When contacted, the chief executive officer of Dhaka Stock Exchange (DSE) Salahuddin Ahmed Khan said: We have received a letter from the Securities and Exchange Commission (SEC) Wednesday in this connection and already we have instructed the department concerned to comply with the order.
The Bangladesh Bank asked the bank chairman to explain his position within two weeks time as to why his shares in the bank bought in fictitious names should not be confiscated, officials said.
"We will take the next course of action in line with the existing Bank Company Act after receiving reply from the chairman of the bank within the stipulated time," the BB executive said.
The central bank issued the notice to the One Bank chairman on the basis of its probe report, submitted to the concerned department of the BB for taking necessary action, the officials said.
Earlier, a probe team of the central bank found that the One Bank chairman held over 25 per cent shares of the private commercial bank in fictitious names in violation of the existing Banking Companies Act.
According to the existing Banking Companies Act, "no person, no company or member of the family either individually or jointly or in both ways, shall buy more than 10 per cent of the share of a bank."
It also asked the managing director of the bank for taking necessary measure to suspend trading of more than 25 per cent sponsor shares on the stock exchanges until further instruction.
"We, in a separate letter, have also asked the managing director of the One Bank to take steps for suspension of trading of the shares in the stock markets," a BB senior executive told the FE.
When contacted, the chief executive officer of Dhaka Stock Exchange (DSE) Salahuddin Ahmed Khan said: We have received a letter from the Securities and Exchange Commission (SEC) Wednesday in this connection and already we have instructed the department concerned to comply with the order.
The Bangladesh Bank asked the bank chairman to explain his position within two weeks time as to why his shares in the bank bought in fictitious names should not be confiscated, officials said.
"We will take the next course of action in line with the existing Bank Company Act after receiving reply from the chairman of the bank within the stipulated time," the BB executive said.
The central bank issued the notice to the One Bank chairman on the basis of its probe report, submitted to the concerned department of the BB for taking necessary action, the officials said.
Earlier, a probe team of the central bank found that the One Bank chairman held over 25 per cent shares of the private commercial bank in fictitious names in violation of the existing Banking Companies Act.
According to the existing Banking Companies Act, "no person, no company or member of the family either individually or jointly or in both ways, shall buy more than 10 per cent of the share of a bank."