BSEC fines four firms, officials Tk 1.09 crore over irregularities

The Bangladesh Securities and Exchange Commission (BSEC) has fined four firms and several of their officials Tk 1.09 crore for securities law violations and fraudulent activities in the stock market.

The firms are NBL Securities Limited, Gibson Securities Limited, UCB Stock Brokerage Limited, and Khulna Printing & Packaging Limited.

Following a client complaint, the BSEC found that NBL Securities failed to maintain buy-and-sell order slips and executed trades without client consent.

The client had filed a complaint with the Dhaka Stock Exchange (DSE) alleging his shares were sold without approval, but NBL Securities failed to resolve it within the stipulated 30-day period.

The regulator subsequently fined the firm Tk 10 lakh, former Managing Director Zobayed Al-Mamun Hasan Tk 5 lakh, and former chief anti-money laundering compliance officer and assistant vice president Farzana Ferdausi Tk 3 lakh — bringing the total to Tk 18 lakh.

The BSEC also found evidence of fraud by UCB Stock Brokerage against client Md Ayub Ali.

A DSE inquiry committee revealed that the brokerage regularly sent fake portfolio statements to Ali’s registered email while concealing actual portfolio information. Genuine statements were sent until August 24, 2022, but fake ones continued until July 18, 2024.

Ali’s mobile number was also intentionally altered so he would not receive CDBL notifications, leaving him unaware of trading activity in his account.

The BSEC described the use of a personal employee email to send fake statements as “a serious offence.”

Although the brokerage claimed Ali’s employee, Saiful Hasan was responsible, the DSE found he was not an authorised person and had not been granted power of attorney over the account.

UCB Stock Brokerage was fined Tk 30 lakh; Managing Director and CEO Mohammed Rahmat Pasha and official Md Sahiduzzaman Tk 15 lakh each; and Compliance Officer Md Rafiqul Islam and official Abdul Ahad Sheikh Tk 3 lakh each — totalling Tk 66 lakh.

The BSEC found that Khulna Printing & Packaging Limited had incurred losses for three consecutive years, failed to declare dividends, accumulated retained earnings deficits exceeding paid-up capital, and had not paid DSE listing fees for over three years.

It also failed to submit required reports and financial statements since 2022, kept production shut without disclosure, and left key governance positions vacant.

The commission fined Chairman SM Amzad Hossain, Directors Md Amzad Hossain and Khan Habibur Rahman, Managing Director Sufia Khatun, CFO Md Ezaz Uddin, and Company Secretary Milan Khan Tk 4 lakh each, totalling Tk 24 lakh.

The BSEC also fined Gibson Securities Limited’s Managing Director Mohammad Gulam Mustafa Tk 1 lakh for violating securities laws.