The Bangladesh Securities and Exchange Commission (BSEC) has instructed 57 stockbroker and dealer firms of the Dhaka Stock Exchange (DSE) to repatriate nearly BDT 400 crore invested outside their core business operations.
In a recent order signed by BSEC Chairman Professor Shibli Rubayat-Ul-Islam, the DSE has been directed to ensure these funds are returned to their primary business activities by October. The order outlines that these firms had invested in various non-core areas such as deposits, land purchases, loans to related companies, unlisted company investments, and loans for directors’ vehicle purchases.
The BSEC directive follows a compliance report from the DSE and audited financial statements of the stockbroker and dealer firms, revealing that these entities were diverting funds away from their registered primary activities. To safeguard the capital market’s interests, the BSEC issued two specific instructions to the DSE: ensure the repatriation of funds by October 31 and monitor the reinvestment of these funds in core business operations. The DSE is required to submit a compliance report to the BSEC within seven working days of the fund repatriation.
According to BSEC data, the 57 stockbroker and dealer firms have invested a total of BDT 399.49 crore in non-core activities.
The BSEC order also stipulates that any investments in other areas must be returned and utilized within the firms’ primary business operations. The DSE has been tasked with overseeing this process and submitting a compliance report to the BSEC within seven working days after the funds have been repatriated.
The directive is effective immediately, emphasizing the urgency of the situation.
Stock brokers and dealers investing in sectors other than value trading include AB Ispahani Securities, ACE Capital Management Services, Rashid Investment Services, Daulatunnesa Equities, Rapid Securities, M-Securities, Ariz Securities, First Capital Securities, Multi Securities and Services, Royal Green Securities, Latif Securities, Uniroyal Securities, Md. Fakhrul Islam Securities, Salta Capital, Daytun Holdings, Island Securities, Etihad Securities, Surma Securities Holding Co., Noveli Securities, CMSL Securities, Nabiul Karim Securities, ANF Management Company, Dragon Securities, Shelltech Brokerage, Rose Securities, RNI Securities , Mashihur Securities , Qazi Equities, Alhaj Jahanara Securities, Midway Securities, KHB Securities, Cosmopolitan Equities, Fortune Securities (Pvt.), Shakeel Rizvi Stock, EMES Securities, Peace Securities, Trustee Securities, Mona Financial Consultancy & Securities, Subv Lee Securities, Doreen Capital Management, GMF Securities, Globe Securities, Anwar Khan Modern Securities, Stock & Bond, Total Communications, Prilink Securities, Asadhi Securities, AD Holdings & Securities, Mika Securities, Akiz Capital Management, Dhaka Securities, Prudential Capital, Bay Rich, Rahman Equity Management, Burma Securities , Inova Securities and Gibson Securities.
