BSEC slaps penalty on 5 stock brokers

The securities regulator Tuesday slapped penalty worth 2.8 million on five stock brokers and a listed company and an individual for breaching margin loan related securities rules, officials said.

The decision of imposing penalties was taken at a commission meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC).

As per the regulatory decision, Gateway Equity Resources will have to pay Tk 1.0 million as its director Rezaul Karim was given loan worth above Tk 43.87 million from the company's paid-up capital and retained earnings.

Mr. Karim invested the money into the securities of the capital market through his BO (beneficiary owner's) account instead of dealer account.

The BSEC fined the NBL Securities Tk 0.3 million as the company received cash money above Tk 0.5 million and issued margin loan above Tk 1.0 million to single client and the company's directors were facilitated by margin loans.

The BSEC has fined Be Rich Tk 0.5 million for providing margin loans against the securities of JMI Syringes and Medical Devices whose P/E ratio was above 40.

Md. Niamul Kabir, a client of Be Rich, has also been Tk 0.2 million as his involvement with arranged trading was proved.

At Tuesday's meeting, the BSEC has imposed a penalty worth Tk 0.5 million on Transcon Securities and Tk 0.3 million on Khurshid Securities for breaching securities rules regarding margin rules.