Regulator pushes broker to pay IPO money
The stock market regulator yesterday asked Shah Mohammad Sagir & Co, a broker, to pay off investors’ money -- if necessary by selling its licence.
The Bangladesh Securities and Exchange Commission (BSEC) took the decision in a commission meeting.
Over 40 investors have complained to the regulator that the brokerage firm is not repaying the money they deposited during initial public offerings.
In response the stock market regulator suspended the share transaction activities of the broker and ordered the Dhaka Stock Exchange to run an investigation.
Accordingly, the DSE ran an investigation and found the complaint to be true.
As a result, the BSEC took the decision and asked the DSE to file a criminal case against the stock broker.
The commission has also decided to fine the shareholder directors of Generation Next Fashion Tk 5 lakh each due to breach of securities law.
The BSEC said the garment maker failed to prepare its audit report as per the international accounting standards, failed to utilise the right share proceeds and continued with its audit firm, ATA Khan & Co Chartered Accountants, for more than three years.
For violating the securities rules, along with the fine, the BSEC has removed ATA Khan & Co Chartered Accountants from a special audit panel, so it will not be allowed to audit any listed company’s account.
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