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Bangladesh Securities and Exchange Commission (BSEC), the capital market regulator, has served show cause letters to 15 brokerage houses for breaking the ethics code for their line of work, specifically by breaking minimum circuit limits.
The BSEC’s spokesperson Muhammad Rezaul Karim told UNB that the show cause letters signed by Md. Kamal Hossain, Assistant Director of the Commission, were sent to the chief executives of the brokerage houses on Tuesday. Some of the brokerages are housed within larger financial institutions.
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The letters said that before commencement of today's (Tuesday) transactions, between 9:45 am and 10 am, the sale order of the shares had been given by the brokerage house at 2 percent below the closing price of the previous day. Such practice is illegal and malicious. In this situation, the commission has sent a show cause letter to them asking for an explanation.
The following brokerage houses were show-caused: Shahed Securities, Bank Asia, Sheltech Brokerage, IDLC Securities, S&H Equity, Lankabangla, BD Finance, MTB Securities, Mercantile Bank, UCB Stock Brokerage, Globe Securities, Shanta Securities, Island Securities, Quayum Securities Limited and Midway Securities Limited.