The Bangladesh Securities and Exchange Commission (BSEC) has suspended the renewal of stock-dealer and stock-broker registration certificate (registration certificate) of stock-dealer and stock-broker registration certificate (registration certificate) of stock market member brokerage house (track number-79). The company applied through Dhaka Stock Exchange (DSE) for renewal of registration certificate but it was not accepted. The regulator BSEC has taken this decision as the company has a shortfall of more than Tk. 28 crore as a consolidated customer (CCA).
Recently, a letter has been given to the Managing Director of Dhaka Stock Exchange (DSE), according to BSEC sources.
The shortfall as an integrated consumer of PFI securities is long-standing. Despite repeated requests from regulatory bodies and stock exchanges, the company has not cleared the shortfall in its consolidated customer accounts. Even in such a situation, no action was taken against the institution during the previous government. However, after the change in the political pot, the new commission headed by Rashid Maqsood, the reconstituted BSEC, has taken strict action against brokerage houses that have shortfalls as integrated customers.
BSEC’s letter addressed to Kazi Fariduddin Ahmed, Managing Director and Chief Executive Officer of PFI Securities Limited, states that the commission is not in a position to renew stock-dealer and stock-broker registration in favor of PFI Securities Limited. Because as of August 21, the company has a deficit of Tk 28.18 million as customer due. Due to which the application for renewal was not accepted due to the expiry of the registration of the institution on November 17.
It is reported that, meanwhile, in the 920th commission meeting held under the chairmanship of BSEC Chairman Khandkar Rashid Maqsood on September 10, the request for extension of time to meet the shortfall of PFI securities as a customer has been rejected. At the same time, BSEC has banned the directors, managing directors or chief executive officers of the company from leaving the country. At the same time it has been decided to stop withdrawing money from the bank accounts of the directors of the brokerage house and block all BO accounts.
As a part of BSEC’s strict stand against the brokerage houses that have a shortage of integrated customers, on November 15, DSE, the main capital market of the country, suspended the trading activities of the capital market intermediary company Subvalley Securities Limited due to a shortage of integrated customers. As per BSEC rules, any securities must have at least Tk 1 lakh as consolidated subscribers. But Subvalley Securities currently has a shortfall of Tk 3 crore 71 lakh 26 thousand 401 as a consolidated customer. As a result, due to shortage of customers, BSEC’s consent has been declared to suspend the trading activities of the brokerage house. Earlier on November 7, BSEC Chairman Khandkar Rashed Maqsood presided over the 930th commission meeting and BSEC fined two brokerage houses, Prudential Securities and NLI Securities Limited, a total of 10 lakh taka from 5 lakh to the two brokerage houses member of the country’s capital market due to deficit in customer accounts. Besides, on September 10, BSEC fined NRBC Bank Securities Tk 5 lakh due to a deficit of Tk 62 crore 76 lakh as a consolidated customer. On July 5, an inspection team of DSE found a shortfall of Tk 62 crore 76 lakh while collecting information regarding the position of customer dues of the brokerage house. Because of this, the company was fined.
Confirming the issue of PFI securities, Executive Director and Spokesperson of BSEC Mohammad Rezaul Karim said that it has not been confirmed from the Dhaka Stock Exchange whether they have met the latest deficiency seen by the institution. Hence their registration was not renewed due to deficiency.
Meanwhile, Kazi Fariduddin Ahmed, managing director and chief executive officer of PFI Securities Limited, tried to contact him several times, but he did not pick up the phone.
