The Bangladesh Securities and Exchange Commission in a controversial move yesterday instructed the Dhaka Stock Exchange to temporarily suspend one of its general managers on charges of violating securities rules.
The stockmarket regulator also directed the premier bourse to inform the commission after taking administrative action against Khandaker Asad Ullah, general manager of human resources and administration of DSE.
But the stockmarket regulator neither disclosed which securities rules were breached nor referred to the rules in arriving at the decision.
The BSEC in a statement only said in addition to the securities rules violation, other allegations against Asad Ullah were proved undoubtedly.
The regulator said it took the decision for the greater interest of capital market and to bring discipline into the market.
Although the BSEC always states the rules under which it takes action against any market intermediary, it bucked the trend in case of Asad Ullah, raising questions about the move.
Curiously, the BSEC took another punitive action against a stockbroker yesterday but in the statement it clearly mentioned the specific rules under which it took the measures.
Asked about Asad Ullah's violation, Saifur Rahman, spokesman of the BSEC, said he could not provide the details. “There is nothing to add anything beyond that we have already mentioned in the statement.”
Contacted, Asad Ullah said: “I still don't know which rules I have violated. The regulator did not even give me the scope to clarify my position.”