12:00 AM, December 26, 2012 / LAST MODIFIED: 12:00 AM, December 26, 2012

Stock regulator hunts for unpaid fines

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Gazi Towhid Ahmed

Bangladesh Securities and Exchange Commission (BSEC) will take action against 128 listed companies, who have failed to pay a total of Tk 530 crore fine slapped by the regulator on different occasions.
The regulator, which recently changed its name to Bangladesh Securities and Exchange Commission, from Securities and Exchange Commission, will also form a three-member committee to realise the amount.
A commissioner, Salam Sikder, will head the committee, which will prepare a sector-wise list to realise the fines imposed between 1996 and December 15 this year, he added.
“The BSEC has taken the initiative after the government has recently finalised the Securities and Exchange (Amendment) Act, 2012,” a BSEC official told The Daily Star.
The fines were for violation of securities rules such unusual trading of shares and mutual fund units, failure to submit financial statement on time, irregularity in dividend declaration and selling assets without permission, the official said.
The amount of fine slapped on 17 textile companies was the highest at Tk 132 crore, followed by Tk 117 crore on 32 insurance companies.
The fine on the companies that traded in over-the-counter market, a separate trading floor for junk shares, was Tk 103 crore.
Among the other sectors, banks were supposed to pay Tk 13 crore, pharma and chemicals Tk 87 crore and food and allied Tk 7 crore, in fine to the regulator.
The regulator will also take action against some directors, who did not pay the fine on time, the BSEC official said.
“We may file cases against the directors,” he said, adding that the government has strengthened the stockmarket regulator by amending the securities rules.
In the last meeting on December 13, the regulator fined nine stockbrokerage firms a total of Tk 15 lakh for breaching securities rules in share trading.
The regulator imposed Tk 2 lakh fine each on Island Securities, Salta Capital, Associated Capital Securities, Reliance Securities Consultant, and LankaBangla Securities -- all members of the Chittagong Stock Exchange.
The stockbrokers violated securities rules while trading Quasem Drycells' shares.
GMF Securities, a member of the Dhaka Stock Exchange, was fined Tk 1 lakh, as it violated rules while trading the shares of Paramount Insurance and Global Insurance.
The BSEC imposed Tk 1 lakh fine on PHP Stocks and Securities on charges of short selling from two clients' code.
AB Securities was fined Tk 1 lakh, as it breached rules through aggressive sale of shares.
The regulator imposed Tk 2 lakh penalty on International Leasing Securities, as it provided credit against non-marginable shares.

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