The Bangladesh Securities and Exchange Commission (BSEC) has ordered an investigation into the overall operations, financial condition and eligibility of merchant bank GSP Investment Limited.

A two-member investigation committee has been formed to examine the company’s customer accounts, margin loans, net assets, investments and other activities. The committee has been given 60 working days to submit its report.

The investigation follows allegations concerning the activities of GSP Investment, a subsidiary of GSP Finance Company (Bangladesh) PLC.

The committee will review whether the company has complied with relevant laws, regulations and conditions of its merchant banking registration. Its review will cover issue management, portfolio management, underwriting and proprietary investments.

It will also examine whether the company remained eligible for merchant banking registration over the past five years under the Securities and Exchange Commission (Merchant Banker and Portfolio Manager) Rules, 1996.

The investigation will assess customer records, agreements and account statements, as well as whether margin loans were provided in compliance with regulations.

The committee will also review GSP Investment’s audited and unaudited financial statements, accounting records and supporting documents for the past five years. Particular attention will be given to the company’s net assets, including any shortfalls caused by investment losses, unrealised losses or other financial adjustments.

BSEC Executive Director and spokesperson Md Abul Kalam said the investigation was ordered following various allegations against GSP Investment. If irregularities or violations are found, action will be taken under the applicable laws and regulations.

The commission will also consider whether the company’s merchant banking registration certificate should be maintained or renewed based on the investigation findings.