B Mirror Report: The Bangladesh Securities and Exchange Commission (BSEC) has sought an explanation from the Dhaka Stock Exchange (DSE) PLC over allegations that it failed to comply with regulatory requirements while recommending the renewal of the stock broker and stock dealer registration certificate of Monarch Holdings Limited.

The decision was taken at the 1,022nd Commission meeting held on Tuesday, chaired by BSEC Chairman Masud Khan, according to a press release issued by the securities regulator.

BSEC said its review of the recommendation submitted by the DSE found that the exchange had positively recommended the renewal of Monarch Holdings’ registration certificate without properly completing the required information in Form “Cha,” as stipulated under Rule 8(3) of the Securities and Exchange Commission (Stock Dealer, Stock Broker and Authorized Representative) Rules, 2000.

According to the Commission, the action was inconsistent with the provisions of the rules and reflected a clear failure by the DSE to fulfill its regulatory responsibilities.

The regulator further said that after seeking clarification, the DSE submitted the required information and the completed Form “Cha.” However, it did not provide any clear regulatory recommendation either in favor of or against the renewal of Monarch Holdings’ registration certificate.

As a result, the BSEC has asked the DSE to explain why it failed to make a definitive recommendation in accordance with the applicable regulations.

The Commission has instructed the DSE to submit, within five working days of receiving the notice, a clear recommendation on the renewal of Monarch Holdings Limited’s registration certificate, supported by all relevant information, analysis, and regulatory assessment in line with the rules.

BSEC also said that the necessary directives in this regard will be formally communicated to the DSE.