The Securities and Exchange Commission (SEC) has fined 12 brokerage houses for illegally lending margin loans to their clients to buy Z-category shares that caused spike in junk scripts' prices, officials said.
The securities regulator last week fined the firms at a Commission meeting, chaired by SEC Chairman Ziaul Haque Khondker.
As per regulatory decision, the firms which have been fined Tk 0.10 million (1.0 lakh) each are: Nouvelle Securities, Salam and Company, Azam Securities, Al-Muntaha Trading Company, Subvalley Securities, Securities Broking and Management, Wifang Securities, Fakhrul Islam Securities, Alliance Securities, Sinha Securities, Island Securities and DSFM Securities.
Last year, the SEC carried out an investigation against some brokerage firms, which breached securities laws by lending margin loans to their clients in purchasing Z-category shares.
Finally, the SEC issued show-cause notices to 23 brokerage firms after getting evidences of foul-play against them.
An SEC official said, among 23 firms, 12 have been fined at first phase and the Commission would take its decision regarding the penalty of remaining eleven firms.
The eleven firms, which also lent margin loans to their client to buy Z-category shares are: Shyamol Equity Management, ICB Securities and Trading Company, Mondol Securities, SNM Securities, Mika Properties and Services, Dhanmondhi Securities, Expo Traders Limited and NCC Bank.
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