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The Bangladesh Securities and Exchange Commission (BSEC) has sought an explanation from the Dhaka Stock Exchange (DSE) over alleged irregularities in its recommendation regarding the renewal of the stockbroker and stock dealer registration certificate of Monarch Holdings Limited.
The securities regulator has also directed the DSE to submit a clear recommendation either in favour of or against the renewal of the registration certificate within five working days, along with necessary information, analysis and regulatory assessment as required under relevant rules.
The decision was taken at the 1,022nd commission meeting of BSEC held on Tuesday, chaired by BSEC Chairman Masud Khan.
According to BSEC, a review of the DSE’s recommendation on Monarch Holdings’ registration renewal found that the stock exchange had recommended renewal without properly filling in the required information in Form ‘Cha’ (Form C) under Rule 8(3) of the Securities and Exchange Commission (Stock Dealer, Stock Broker and Authorised Representative) Rules, 2000.
The commission said the action was inconsistent with the regulatory requirements and represented a failure by the DSE to properly perform its regulatory responsibilities.
Following the issue, BSEC asked DSE to provide an explanation. In response, the exchange submitted the completed Form ‘Cha’ along with the required information but did not provide a specific regulatory opinion either supporting or opposing the renewal of Monarch Holdings’ registration.
In this context, BSEC has asked DSE to explain why it failed to provide a clear recommendation as required under the rules.
The commission has instructed DSE to submit its explanation and, within five working days of receiving the letter, provide a detailed recommendation on Monarch Holdings’ registration renewal based on the relevant regulations, including supporting documents, analysis and regulatory evaluation.
The move comes as the securities regulator continues to strengthen oversight of brokerage firms and market intermediaries to ensure compliance with regulatory standards and improve transparency in the capital market.
