Bangladesh Securities and Exchange Commission (BSEC) has fined Swadesh Investment Management Tk 5.0 million for breaching the rules tied to the management of portfolios and public issues.
Financial mismanagements were also taken into account as the securities regulator imposed the penalty, according to a recent order. The action has been taken based on an inspection report.
The enforcement team of the BSEC also sought clarifications from the company for the rules' violation.
As an issue manager, a merchant bank is required to submit at least one document of public issue to the commission in two consecutive calendar years. But Swadesh Investment Management did not maintain this provision as required.
According to the BSEC order, the company made an initial public offering in 2016 for the last time.
Apart from maintaining own portfolio, a merchant banker is also required to maintain five additional portfolios of clients every year.
But Swadesh Investment Management did not comply with this provision either.
The BSEC inspection team found that the company had not maintained separate bank accounts for customers.
Apart from imposing the penalty, the securities regulator has asked Swadesh Investment Management to resolve financial mismanagements by depositing around Tk 76.74 million into the company's account by October 28, 2028.
