B Mirror Report:The Bangladesh Securities and Exchange Commission (BSEC) has initiated preliminary steps to cancel the licenses of six merchant banks in an effort to restore discipline in the capital market. The move comes after allegations of prolonged inactivity and repeated violations of regulatory rules by these institutions.

According to BSEC sources, the firms under investigation are FAS Capital Management Limited, Roots Investment Limited, HAL Capital Limited, Riverstone Capital Limited, NDB Capital Limited, and Imperial Capital Limited. Based on findings from the Market Intelligence and Investigation Division, the commission has formed separate committees each consisting of two officials to assess whether these companies should retain their licenses.

Investigators will closely examine internal operations, compliance with margin rules, and the transparency of back-office systems. Special emphasis will be placed on evaluating management efficiency and identifying any irregularities related to data security or operational practices. Each institution will be reviewed by a dedicated team with specific responsibilities.

As per the assigned duties, Anu Dey and Sirajul Islam will investigate FAS Capital, while Rakibur Rahman and Bibhash Ghosh will review Roots Investment. Siddiqur Rahman and Saidul Islam have been tasked with probing HAL Capital, and Emdadul Haque and Masum Billah will examine Riverstone Capital. Golam Kibria and Mizanur Rahman will assess NDB Capital, while Ahsanul Kabir and Shakila Sultana will investigate Imperial Capital.

The investigation will go beyond document reviews, focusing on overall conduct and operational capacity. The BSEC will also assess whether the firms hold regular board meetings and comply with fee payment requirements. If persistent violations of securities laws are found, the committees will recommend final cancellation of licenses.

The initiative aims to protect investors’ interests and ensure accountability among intermediary institutions. The regulator believes that removing non-compliant and inactive merchant banks will improve transparency and efficiency in the market. Strict punitive measures will be taken if major irregularities are confirmed.

Currently, there are 66 licensed merchant banks operating in the stock market. Merchant banks play a key role in bringing new companies to the market, managing IPOs, and advising investors. However, the regulator is now moving against those that have failed to fulfill their responsibilities despite holding valid licenses.