The Dhaka Stock Exchange (DSE) has suspended all activities of brokerage house Haji Ahmad Brothers Securities Ltd as a stockbroker and stock dealer for failing to renew its registration certificate.

The suspension has been effective since August 7, according to a formal letter sent by the DSE to the company’s managing director.

The registration certificates of Haji Ahmad Brothers Securities as a stockbroker and stock dealer expired on August 6. As the company failed to renew the certificates within the stipulated period, the DSE suspended its stockbroker and stock dealer activities from the following day.

The DSE said the action was taken in accordance with relevant regulations. Under Rule 3 of the Securities and Exchange Commission (Stock-Dealer, Stock-Broker and Authorized Representative) Rules, 2000, no stock dealer, stockbroker or authorized representative can conduct securities trading or related activities without a valid registration certificate.

As a result, Haji Ahmad Brothers will not be able to conduct new share transactions until its registration certificates are renewed.

Earlier, the Bangladesh Securities and Exchange Commission (BSEC) fined Haji Ahmad Brothers Securities Tk 10 lakh after finding irregularities in the management of customer funds and BO accounts.

According to BSEC inspection documents, investors were owed Tk 11.35 crore as of June 13, 2022, while Tk 9.25 crore was deposited in the Consolidated Customer Account (CCA). This resulted in a customer fund shortfall of Tk 2.09 crore. A similar shortfall was also found during 2023-24.

The BSEC also found evidence of cash withdrawals through cheques from the customer account between June 2021 and September 2024.

The BSEC also identified irregularities in the company’s BO account management. Several BO accounts were found to have been opened using the same email addresses, mobile phone numbers and bank accounts.

During its inspection, the regulator identified 40 email addresses against which between three and 16 BO accounts had been opened. Multiple BO accounts were also found linked to 24 bank accounts.

The BSEC was not satisfied with the explanations provided by the brokerage and imposed a Tk 10 lakh fine. Under the commission’s order, the company must pay the penalty through a pay order within 30 days.