The securities regulator has asked the NRB Bank to take departmental action against its chief financial
officer (CFO) Kamrul Hasan and others concerned as they executed unauthorised share transactions.
The bank incurred financial losses as a result, it said.
The Bangladesh Securities and Exchange Commission (BSEC) instructed the bank last week through a letter to its managing director.
"Kamrul Hasan is found guilty of being involved in unethical trading activities in collaboration with the outsiders of the company, which caused losses for NRB Bank and earned profit for his own and other outsiders," according to the letter.
The bank will have to inform the BSEC within February 28 after ensuring compliance of the instruction.
"The NRB Bank had earlier requested us to take measures against the officials. We suggested taking departmental actions on completion of our investigation," said a senior official of the BSEC.
Asked, another BSEC official, also a member of the investigation committee, said every bank invests in the stock market subject to prior approval of the bank's investment committee.
"But the transactions were executed on behalf of the bank without any prior approval from its investment committee. As a result, the bank incurred losses," he said.
The inquiry committee members, however, did not disclose the amount of losses incurred by the bank.
In its letter, the securities regulator also said the board of directors, management and investment committee failed to ensure confidentiality of preserving the board memo/minutes and internal audit reports of the company.
"The NRB Bank should take necessary steps to ensure the confidentiality of the documents," the BSEC letter said.
A senior official of the NRB Bank said the CFO presently is under suspension as an investigation was going on.
In September last year, the central bank fined the NRB Bank for making investment in the stock market in breach of rules.
