The Financial Express

Suspension on 15 traders withdrawn

| Updated: May 05, 2022 16:41:34

Suspension on 15 traders withdrawn

The securities regulator has withdrawn suspension on 15 traders of nine brokerage firms of Dhaka Stock Exchange (DSE) taking into account the plea of the firms and their associations.

The Bangladesh Securities and Exchange Commission (BSEC) on Wednesday withdrew its suspension imposed on April 18.

"....the commission has accepted the prayer regarding withdrawal of suspension of traders/authorised representatives," said the BSEC letter sent to the DSE's managing director.

It also said the commission has also warned the traders not to violate any securities law in future.

On April 18, the securities regulator asked nine brokerage firms to suspend their 15 traders for executing their clients' sale orders sans mentioning any market price of the securities amid the market's downward trend.

Asked, an official of a brokerage firm said the DSE Brokers Association of Bangladesh (DBA) and stock brokers urged the BSEC to withdraw the suspension as the sale orders were executed in line with an option set in the exchange's automated order management system (OMS).

"In its prayer, the DBA made a plea for withdrawing the suspension as the traders acted in line with an existing option," the official said.

He has also said they have forwarded their traders' explanation regarding execution of clients' sale orders to the securities regulator.

"The BSEC has withdrawn the suspension considering the pleas of both the DBA and stock brokers," the official added.

As per the BSEC order issued on April 18, ICB Securities Trading Company suspended its five traders while two representatives from each of Rashid Investment Services and Shyamol Equity Management were suspended.

Besides, one representative was suspended by each of the brokerage firms namely Parkway Securities, Quayum Securities, Mercantile Bank Securities, TA Khan Securities Company, JKC Securities and Kazi Equities.

After issuance of the regulatory order, the stock brokers said their authorised representatives executed sale orders in line with their clients' instructions.

According to stock brokers, the exchange's automated OMS has an option of executing sale or buy orders without mentioning prices.

In that case, the traders place only the amount of securities without mentioning the prices at which their clients want to buy or sell shares.

And a client's sale order is executed at the best prices if the quantity of shares matches with the buyer's quantity of shares.

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