Brokers asked to submit client ledgers to bourses
Wednesday, 29 September 2010
FE Report
The SEC Tuesday asked the stock brokers to submit the scrip-wise client ledgers of all non-marginable securities to both the stock exchanges on the same day.
The Dhaka Stock Exchange (DSE) officials told the FE Tuesday evening that some stock brokers had submitted their clients' ledgers until 6pm on the day. However, the DSE monitoring section decided to remain open until midnight to receive the ledgers.
After examining the scrip-wise client ledgers the stock exchanges will have to submit a summary report to the SEC by October 3, sources said.
The Securities and Exchanges Commission (SEC) issued the directive in a move to rein in an overheated market, which gained 109 points Tuesday within first five minutes, following a three-month stay order on the SEC's directive.
The SEC asked both the stock exchanges to deliver three information including the investors' net capital balance to the SEC by September 29.
The SEC urged the bourses to submit the copy of net balance statements, as submitted by the brokers, for the months of May, June, July and August this year. The bourses will also have to submit the aggregate liabilities of the stock brokers based on the latest available financial information.
In the same letter, the stock exchanges are also asked to submit the list of the top ten clients of the brokerage houses as on September 27, showing the debit balance with the brokers.
An SEC official said the client-wise ledgers have been asked to ensure the compliance of margin-related rules.
"By examining the clients' ledgers the DSE will identify whether anyone has taken margin loans against the non-marginable securities or not," the official said.
The SEC Tuesday sent letter to the chief executive officers of the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (SEC) to act according to the regulator's directive.
"The commission has reviewed the current market trend and has observed that the prices of non-marginable securities have increased significantly as well as unusually in some cases," the SEC letter said.
"The commission deems it is necessary to ensure the compliance of margin-related rules in purchasing those non-marginable securities," it added.
The SEC Tuesday asked the stock brokers to submit the scrip-wise client ledgers of all non-marginable securities to both the stock exchanges on the same day.
The Dhaka Stock Exchange (DSE) officials told the FE Tuesday evening that some stock brokers had submitted their clients' ledgers until 6pm on the day. However, the DSE monitoring section decided to remain open until midnight to receive the ledgers.
After examining the scrip-wise client ledgers the stock exchanges will have to submit a summary report to the SEC by October 3, sources said.
The Securities and Exchanges Commission (SEC) issued the directive in a move to rein in an overheated market, which gained 109 points Tuesday within first five minutes, following a three-month stay order on the SEC's directive.
The SEC asked both the stock exchanges to deliver three information including the investors' net capital balance to the SEC by September 29.
The SEC urged the bourses to submit the copy of net balance statements, as submitted by the brokers, for the months of May, June, July and August this year. The bourses will also have to submit the aggregate liabilities of the stock brokers based on the latest available financial information.
In the same letter, the stock exchanges are also asked to submit the list of the top ten clients of the brokerage houses as on September 27, showing the debit balance with the brokers.
An SEC official said the client-wise ledgers have been asked to ensure the compliance of margin-related rules.
"By examining the clients' ledgers the DSE will identify whether anyone has taken margin loans against the non-marginable securities or not," the official said.
The SEC Tuesday sent letter to the chief executive officers of the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (SEC) to act according to the regulator's directive.
"The commission has reviewed the current market trend and has observed that the prices of non-marginable securities have increased significantly as well as unusually in some cases," the SEC letter said.
"The commission deems it is necessary to ensure the compliance of margin-related rules in purchasing those non-marginable securities," it added.