Dawn a broker again
Trading at Dawn Securities resumed yesterday after the High Court stayed the regulator's suspension of the stockbroker, a senior DSE official confirmed.
The court's order, which also asked the Dhaka Stock Exchange to explain the reasons behind its suspension order, is valid for three months.
The official said the DSE will submit its explanation, and that the regulator plans further legal steps against Dawn Securities. On July 19, the DSE suspended the trading activities of Dawn Securities for allegedly swindling its clients out of Tk 9.5 crore.
The premier bourse's management let trading via Dawn Securities resume at around 1:00pm yesterday, after the officials of the brokerage firm presented the court stay order at the exchange.
The stockbroker received the money from its clients to purchase shares, but financial data on its computers allegedly showed that no shares had been purchased for them, according to a probe by the DSE.
The prime bourse authorities had also asked the brokerage house to pay back all the dues to its clients in 15 days.
Should Dawn fail to quickly pay back the dues, the DSE said, it will strip the brokerage of its membership licence and sell it to another house.
DSE investigators said Dawn is now Tk 5.55 crore short of full payback of clients.
During the investigation, the DSE also found that some cheques signed by Dawn in favour of its clients for payback have not been honoured by banks.
Dawn Securities Managing Director Abdul Hamid Bhuiyan could not be reached by phone.
In 2005 and 2006, the DSE suspended five brokers for similar irregularities, and sold out their membership licences to pay back their clients.
The brokers were: Capital Roops, JR Capital Company, MR Company, T Mushfu and Company and SPM Ltd.
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