SEC fines 12 brokers

The Securities and Exchange Commission (SEC) yesterday fined 12 brokerage houses Tk 1 lakh each, as they provided credit to their clients to buy junk or 'Z' category shares.
The commission at a meeting last week decided to launch the probe, which found evidences of unfair play by the brokers.
The brokerage firms are Nouvelle Securities, Salam and Company, Azam Securities, Al-Mutaha Trading Company, Subvalley Securities, Wifang Securities, Securities Breaking and Management Service, Fakhrul Islam Securities, Alliance Securities, Sinha Securities, Island Securities and DSFM Securities.
They provided margin loans to their clients to buy 'Z' category shares, and so these junk shares had become overpriced, said a market insider.
The SEC earlier requested the Dhaka Stock Exchange to find out the companies that provide loans to buy junk shares.