The Chittagong Stock Exchange (CSE) has suspended the trading operations of International Leasing Securities Limited after the brokerage failed to renew its stock broker and stock dealer registration certificates.

The move follows a similar decision by the Dhaka Stock Exchange (DSE), which suspended the firm’s trading activities on July 2. Subsequently, Central Depository Bangladesh PLC (CDBL) suspended the company’s Depository Participant (DP) operations on July 5.

According to the CSE, it notified the company’s acting chief executive officer of the suspension through a letter issued on Sunday and also informed the Bangladesh Securities and Exchange Commission (BSEC) and CDBL.

The exchange said the suspension was imposed following communications received from the DSE and CDBL. The restrictions will remain in force until further instructions are issued by the BSEC and CDBL.

Under existing regulations, a brokerage firm cannot conduct share trading without a valid stock broker and stock dealer registration certificate.

Following the suspension of its DP operations by CDBL, the company’s BO account-related depository services have also been halted.

Market sources said International Leasing Securities, a subsidiary of troubled financial institution International Leasing and Financial Services Limited (ILFSL), is currently burdened with negative equity of around Tk 300 crore. The company has faced severe financial difficulties since the financial fraud linked to former businessman P.K. Halder significantly weakened the capital base of the parent company and its subsidiaries.

Market participants noted that the simultaneous suspension of both trading and depository operations effectively brings a brokerage’s normal business activities to a standstill. To resume operations, the company will need to resolve its registration issues and obtain the necessary approvals from the BSEC, DSE, CSE, and CDBL.

Under the rules of both the DSE and CSE, all Trading Right Entitlement Certificate (TREC) holders are required to maintain positive net assets to safeguard investors’ interests and ensure the stability of the capital market.