Trade suspension order on Arafat Securities lifted
Friday, 6 November 2009
FE Report
The Securities and Exchange Commission (SEC) Wednesday lifted trade suspension order on Arafat Securities Ltd taking into account of investors' interest.
The securities regulator suspended trading of the brokerage house for one month on October 19 as Arafat was found involved in short selling, which is prohibited in the country's capital market.
Short selling is the sale of securities that are not owned by the seller.
"Trading of the brokerage house was allowed considering the interest of the investors," said a high official of the commission.
And during the period of October, 2008 and May, 2009, Arafat Securities executed short sales in favour of Abdullah and Mujibur breaching the securities regulation, the SEC said.
It bought a bulk quantity of shares of Beach Hatchery in favour of its clients, but the shares were delivered to its chief executive officer Abdullah (710,000 shares) and its authorised representative Mujibur Rahman Sheikh ( 250,500 shares), according to the SEC findings.
Earlier, the Dhaka Stock Exchange management requested the SEC to adjourn a trade suspension order on a brokerage house for 10 days to allow the firm's clients transferring or withdrawing their securities or investment.
The Securities and Exchange Commission (SEC) Wednesday lifted trade suspension order on Arafat Securities Ltd taking into account of investors' interest.
The securities regulator suspended trading of the brokerage house for one month on October 19 as Arafat was found involved in short selling, which is prohibited in the country's capital market.
Short selling is the sale of securities that are not owned by the seller.
"Trading of the brokerage house was allowed considering the interest of the investors," said a high official of the commission.
And during the period of October, 2008 and May, 2009, Arafat Securities executed short sales in favour of Abdullah and Mujibur breaching the securities regulation, the SEC said.
It bought a bulk quantity of shares of Beach Hatchery in favour of its clients, but the shares were delivered to its chief executive officer Abdullah (710,000 shares) and its authorised representative Mujibur Rahman Sheikh ( 250,500 shares), according to the SEC findings.
Earlier, the Dhaka Stock Exchange management requested the SEC to adjourn a trade suspension order on a brokerage house for 10 days to allow the firm's clients transferring or withdrawing their securities or investment.