The stock market watchdog has taken punitive actions against controversial brokerage house Multi Securities & Services after it barred an inquiry team from entering its premises.
The inquiry committee of the Bangladesh Securities and Exchange Commission (BSECB) went for a spot visit to the office of Multi Securities and Services Limited on Wednesday morning. But representatives of the stock broker refused to cooperate with the inquiry committee.
They (respective officials) also expressed inability to produce any document before the committee. The investors were not even allowed in the office.
In an order issued on Thursday, the BSEC said that keeping the investigators from doing their duty was a clear violation of the securities law. The order bore the signature of the newly-appointed Chairman Khondoker Rashed Maqsood.
So, to protect the interest of investors, the BSEC took punitive actions.
The non-margin limit / free limit facility will remain suspended for the brokerage firm. It will not get any dividend from the stock exchanges until further notice from the security regulator.
Moreover, the broker will be unable to participate in any IPO/RPO.QIO as an eligible investor and will not get their registration certificate renewed as stock broker and depository participant until further notice.
Multi Securities & Services will also not be allowed to open any new branches until further notice.
The BSEC has ordered the stock exchanges to keep a watch on the brokerage firm for at least one year after the adjustment of the shortfall of the money in its consolidated customer's account.
The inquire committee could not inspect any back-office software of the stock broker and relevant documents. It raised concerns over the safety and protection of assets and securities of the clients of the brokerage firm.
Multi Securities and Services is accused of helping Hasan Taher Imam and Chowdhury Nafeez Sarafat in illegal trade in securities.
Both are owners of RACE Asset Management that is undergoing investigation for financial frauds.
Transactions suspended
The BSEC has ordered suspension of all types of trade in and transfer of securities in the portfolio accounts of Jalal Ekramul Kabir, Hasan Taher Imam, and Chowdhury Nafeez Sarafat.
Also, any request of transfer of securities to the accounts of the persons mentioned above will not be entertained until further order.
The securities regulator asked the stock exchanges and the Central Depository Bangladesh Limited to report the shareholding status of the beneficiary owner's accounts of the three within seven working days.
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