SEC suspends Arafat Securities
The stockmarket regulator yesterday suspended the trading activities of Arafat Securities Ltd, a stockbroker, for a month on charges of operating a branch without permission.
The Securities and Exchange Commission (SEC) asked the brokerage firm to be present at today's hearing on the issue. SEC Executive Director Farhad Ahmed confirmed the news.
In an inspection, the SEC found that Arafat Securities has been operating a branch in Naogaon, but did not take approval from the regulator to operate the branch office.
The SEC also found that Arafat Securities deposited the money received from people into an individual's bank account, instead of its own.
It is not the first time the trading activities of Arafat Securities have been suspended. The SEC had suspended the activities of the stockbroker earlier on charges of breaching securities rules.
The regulator also fined the broker at least three times on charges of manipulating share prices.
The Daily Star could not immediately reach Arafat Securities Managing Director Mohammed Abdullah for comment. His mobile number listed on the Dhaka Stock Exchange website was unreachable.
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