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SEC extends provisioning time for merchant banks, stockbrokers

BSECMerchant banks, stockbrokers and stock dealers would get one more year to continue provisioning unrealised losses in their own portfolios.

The Bangladesh Securities and Exchange Commission extended the provisioning timeframe up to December 2014 at a meeting yesterday (3 December 2013) with the regulator’s Chairman M Khairul Hossain in the chair.

The provisioning facility will be applicable to the losses counted against the own portfolios of merchant banks, stockbrokers and stock dealers in the calendar years of 2012 and 2013, the BSEC said in a statement.

Earlier on January 29, the regulator allowed the merchant banks for provisioning their unrealised losses of 2012 by December this year.

Later, the regulator provided the similar facility to the stockbrokers and stock dealers.

At yesterday’s meeting, the BSEC also fined a listed firm and five stockbrokers a total of Tk 23 lakh for breaching securities rules.

The regulator fined Delta Spinners Tk 10 lakh, as the listed company broke securities rules by providing inconsistent information in its audited financial statement for 2012.

Among the stockbrokers, DMR Securities Services was fined Tk 3 lakh on charges of ‘short selling’ shares of Prime Textile, Sonargaon Textile and Agni Systems.

Tamha Securities, and Pioneer Shares and Securities were also fined Tk 1 lakh each on charges of short selling Shahjalal Islami Bank shares and FAS Finance and Investment shares respectively.

The regulator imposed a Tk 7 lakh fine on Azam Securities for providing share credits to its directors and clients violating margin loan rules. The BSEC also fined Be Rich Ltd Tk 1 lakh for breaking securities rules.

Meanwhile, the Dhaka Stock Exchange authorities urged the central bank to release Tk 600 crore, the rest of a Tk 900 crore refinance scheme for retail investors who lost money to a price debacle in 2011.

The premier bourse made the appeal while a delegation of the DSE board met Bangladesh Bank Governor Atiur Rahman at the latter’s office yesterday (3 December 2013).

The first instalment of Tk 300 crore was released in favour of the Investment Corporation of Bangladesh on August 26.
But, this time the DSE wants the fund to be disbursed through subsidiaries of banks and financial institutions, the bourse said in a press statement.

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