B Mirror Report:The Bangladesh Securities and Exchange Commission (BSEC) has fined four institutions and their officials a total of Tk 10.9 million for violating securities laws, defrauding investors, and committing various irregularities in share trading.

The entities penalized include NBL Securities Limited, Gibson Securities Limited, UCB Stock Brokerage Limited, and listed company Khulna Printing & Packaging Limited. The action was taken in April after the firms failed to provide satisfactory explanations during hearings.

BSEC investigations found that NBL Securities failed to properly record client buy-sell orders and executed trades without client consent. The firm also did not resolve complaints within the stipulated timeframe and was involved in professional misconduct. It was fined Tk 1 million. Its former Managing Director Zobaed Al-Mamun Hasan was fined Tk 500,000, and former Anti-Money Laundering Compliance Officer Farzana Ferdousi was fined Tk 300,000, bringing the total penalty to Tk 1.8 million.

UCB Stock Brokerage Limited faced the largest penalty after evidence of serious fraud involving a client, Md. Ayub Ali. The firm was found to have sent fake portfolio statements via email while concealing actual account information. While accurate reports were provided until August 24, 2022, falsified statements continued to be sent until July 18, 2024.

The company also deliberately altered the client’s mobile number to prevent him from receiving transaction alerts from the Central Depository Bangladesh Limited (CDBL). Additionally, fake statements were sent using a personal email account of an employee, which was considered a serious offense.

UCB Stock Brokerage was fined Tk 3 million. Its Managing Director and CEO Mohammad Rahmat Pasha and official Md. Shahiduzzaman were each fined Tk 1.5 million. Compliance Officer Md. Rafiqul Islam and official Abdul Ahad Sheikh were each fined Tk 300,000. The total penalty in this case reached Tk 6.6 million.

Khulna Printing & Packaging Limited was also found guilty of multiple violations. The company failed to declare cash dividends despite incurring losses for three consecutive years, and its retained losses exceeded its paid-up capital, placing it under BSEC’s exit plan.

It also failed to pay listing fees to the Dhaka Stock Exchange for more than three years and did not submit monthly reports on shareholding and free-float since October 2022. Additionally, it stopped submitting quarterly and annual financial statements after June 2022.

Investigators found that the company had suspended production for a prolonged period without disclosing it as price-sensitive information. Its website remained inactive, and key positions such as Company Secretary and Chief Financial Officer were vacant, violating corporate governance rules.

As a result, Chairman SM Amjad Hossain, directors Md. Amjad Hossain and Khan Habibur Rahman, Managing Director Sufia Khatun, CFO Md. Ejaz Uddin, and Company Secretary Milon Khan were each fined Tk 400,000, totaling Tk 2.4 million.

In a separate case, Gibson Securities Limited’s Managing Director Mohammad Golam Mostafa was fined Tk 100,000 for violating securities laws.