SEC to probe share dealings of four banks, brokerage firms
Wednesday, 10 October 2007
The Securities and Exchange Commission (SEC) is set to investigate the share-related dealings of two merchant banks and as many brokerage firms, a senior official said Tuesday, reports bdnews24.com.
The stock market regulator is concerned about share transactions of the merchant banking wings of two non-bank financial institutions (NBFIs) - IDLC and LankaBangla Finance - as well as the brokerage houses of Dhaka Bank and NCC Bank.
"We have formed the probe teams to see whether there is any manipulation of share trading by the market participants," SEC Member Mansur Alam said.
The SEC initiated the inquiry after it had detected anomalies at the merchant banking wing of one the biggest market players, AB Bank.
AB bank accumulated huge gains by extending loans to its clients to capitalise on the upbeat mood in the market in early 2007. Extension of the unbridled loans by AB Bank in turn led the market to rise further.
"We expect every market participant will act with due diligence and fairness, and follow ethical principles so that the investors' confidence is strengthened. It will ultimately benefit all," said Mansur Alam.
The SEC has formed two separate probe teams, which, over a 30-day period, will investigate the dealings of the two NBFIs. The investigations will be carried out under the SEC Ordinance 1969.
By law, the investigating officials will be able to scrutinise the business of the financial institutions, or any transaction in securities by any member, director, and officer or by any person related to the institutions, SEC Executive Director Anwarul Kabir Bhuiyan said.
The stock market regulator is concerned about share transactions of the merchant banking wings of two non-bank financial institutions (NBFIs) - IDLC and LankaBangla Finance - as well as the brokerage houses of Dhaka Bank and NCC Bank.
"We have formed the probe teams to see whether there is any manipulation of share trading by the market participants," SEC Member Mansur Alam said.
The SEC initiated the inquiry after it had detected anomalies at the merchant banking wing of one the biggest market players, AB Bank.
AB bank accumulated huge gains by extending loans to its clients to capitalise on the upbeat mood in the market in early 2007. Extension of the unbridled loans by AB Bank in turn led the market to rise further.
"We expect every market participant will act with due diligence and fairness, and follow ethical principles so that the investors' confidence is strengthened. It will ultimately benefit all," said Mansur Alam.
The SEC has formed two separate probe teams, which, over a 30-day period, will investigate the dealings of the two NBFIs. The investigations will be carried out under the SEC Ordinance 1969.
By law, the investigating officials will be able to scrutinise the business of the financial institutions, or any transaction in securities by any member, director, and officer or by any person related to the institutions, SEC Executive Director Anwarul Kabir Bhuiyan said.