Bourse bosses asked to step up vigil
Tuesday, 7 December 2010
FE Report
The securities regulator has asked leaders of bourses to reinforce vigilance over stock brokers so that they can't snap up shares on behalf of clients before cheques are en-cashed.
The Securities and Exchange Commission (SEC), in a meeting Monday, also directed the elected leaders to settle members' margin provision, officials said.
"As per securities rules, investors are allowed to buy shares only when their cheques will be cashed," an SEC official said.
Other issues discussed in the meeting are to extend the area of spot transaction to increase share supply, to reduce settlement period and proper monitoring of margin loans provided by stock brokers to their clients, the official added.
The meeting was held at the SEC office with its Chairman Ziaul Haque Khondker in the chair.
"We've raised the issue of brokerage firms' margin deposit. No final decision was taken and there is a possibility to settle the issue by January," an official who attended the meeting said.
Recently, members of Dhaka Stock Exchange (DSE) protested the regulator's decision to raise the amount of deposit for the safety opf general investors.
The SEC extended the execution period of deposit, which will come effect from January 2.
The securities regulator has asked leaders of bourses to reinforce vigilance over stock brokers so that they can't snap up shares on behalf of clients before cheques are en-cashed.
The Securities and Exchange Commission (SEC), in a meeting Monday, also directed the elected leaders to settle members' margin provision, officials said.
"As per securities rules, investors are allowed to buy shares only when their cheques will be cashed," an SEC official said.
Other issues discussed in the meeting are to extend the area of spot transaction to increase share supply, to reduce settlement period and proper monitoring of margin loans provided by stock brokers to their clients, the official added.
The meeting was held at the SEC office with its Chairman Ziaul Haque Khondker in the chair.
"We've raised the issue of brokerage firms' margin deposit. No final decision was taken and there is a possibility to settle the issue by January," an official who attended the meeting said.
Recently, members of Dhaka Stock Exchange (DSE) protested the regulator's decision to raise the amount of deposit for the safety opf general investors.
The SEC extended the execution period of deposit, which will come effect from January 2.