B Mirror Report:  The Bangladesh Securities and Exchange Commission (BSEC) has imposed a total fine of Tk 6.6 million on UCB Stock Brokerage Limited and four of its senior officials after proving allegations of serious irregularities, including data tampering, issuance of false portfolio statements, and disappearance of important documents.

The action was taken following an investigation into a complaint filed by investor Md. Ayub Ali. The investigation confirmed multiple violations, including unauthorized changes to the investor’s personal information, preparation of fake account statements, and gross negligence in maintaining required documents.

According to findings, the investor’s mobile number and email address were changed without his consent, replacing them with unrelated contact details—an act that directly violates securities regulations. The brokerage also provided fabricated portfolio statements to mislead the investor. Furthermore, the firm failed to preserve the original Beneficiary Owner (BO) account opening form and allegedly concealed the issue while inserting false information without the client’s approval.

As per the BSEC decision, UCB Stock Brokerage Limited has been fined Tk 3 million. Managing Director and CEO Mohammad Rahmat Pasha and officer Md. Shahiduzzaman have each been fined Tk 1.5 million. Compliance Officer Rafiqul Islam and officer Abdul Ahad Sheikh have been fined Tk 300,000 each.

The penalties were imposed under multiple provisions of securities laws, including the Securities and Exchange Commission Act, 1993; the Securities and Exchange Ordinance, 1969; and the Stock-Dealer, Stock-Broker and Authorised Representative Rules, 2000.

Market analysts said protecting investor data and ensuring transparency are essential for maintaining confidence in the capital market. They noted that strict enforcement actions like this are necessary to deter misconduct and restore discipline among brokerage firms.

When contacted, Managing Director and CEO Mohammad Rahmat Pasha said the matter remains under investigation and is currently sub judice. He added that the commission is expected to make a final decision after receiving the investigation report from the Police Bureau of Investigation (PBI).