B Mirror Report:The Dhaka Stock Exchange (DSE) has been directed to inspect seven brokerage houses following allegations of irregularities, particularly in the management of margin loans.

The Bangladesh Securities and Exchange Commission (BSEC) issued the directive, asking the DSE to conduct detailed inspections and submit a comprehensive report.

According to sources, the allegations include violations of margin lending rules and other operational misconduct within the firms. The instruction was conveyed through a letter from BSEC’s Market Intelligence and Investigation Department to the DSE’s Chief Regulatory Officer (CRO).

The brokerage houses selected for inspection are Standard Bank Securities Ltd (TREC No-156), JKC Securities Ltd (TREC No-179), Ahmed Iqbal Hasan Securities Ltd (TREC No-114), Merchant Securities Ltd (TREC No-169), Sheltech Brokerage Ltd (TREC No-120), and Commerce Bank Securities and Investment Ltd (TREC No-180).

Earlier, on February 26 and March 4, the DSE sent letters to the BSEC highlighting issues related to the renewal of stock broker and dealer registration certificates, along with concerns over irregularities in margin loan disbursement.

The BSEC noted that documents submitted by the DSE indicated non-compliance with the Margin Rules, 1999, and guidelines issued on May 20, 2022.

Under Rule 17(1) of the Securities and Exchange Rules, 2020, the DSE has been instructed to include any additional irregularities found during the inspection in its report.

Market insiders say the move reflects increased regulatory efforts to restore discipline in the stock market. The BSEC’s stricter stance on margin lending is expected to improve transparency and help rebuild investor confidence.