Stockbroker fined Tk 5 lakh

Bangladesh Securities and Exchange Commission yesterday fined a stockbroker Tk 5 lakh on charges of short-selling shares, which is a violation of securities rules.
The stockmarket regulator imposed the financial penalty on Salta Capital at a meeting chaired by the commission's chief M Khairul Hossain.
One lakh Eastern Bank shares were traded from Salta Capital everyday between April 8 and April 10 through short-selling, which is the sale of a stock that an investor or a brokerage or a dealer does not own.
The punishment came after an investigation detected short-selling by Salta Capital, the regulator said in a statement.
At yesterday's meeting, BSEC also formed a two-member panel to investigate an abnormal rise in prices of some listed companies' shares.

The firms whose share prices rose abnormally were: Mithun Knitting, CVO Petrochemical, Tallu Spinning and Bangas.
The regulator also asked the panel, comprising BSEC Deputy Director Shamsur Rahman and Assistant Director Rakibur Rahman, to submit a probe report in 15 days.