BSEC suspends PFI Securities’ license renewal, no transactions on Monday
Despite applying through the Dhaka Stock Exchange, the application of PFI Securities was rejected due to a deficit of over Tk28 crore in its Consolidated Customer Account
The Bangladesh Securities and Exchange Commission (BSEC) has suspended the renewal plea of the stock dealer and stockbroker registration certificates of PFI Securities, a member brokerage house of the stock exchanges.
Despite applying through the Dhaka Stock Exchange (DSE), the application of PFI Securities was rejected due to a deficit of over Tk28 crore in its Consolidated Customer Account (CCA).
According to BSEC Executive Director and Spokesperson Mohammad Rezaul Karim, PFI Securities has had a long-standing deficit in its customer accounts. Despite repeated warnings from both the regulator and the stock exchange, the company failed to resolve the issue.
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The BSEC also noted that the DSE could not confirm whether the deficit had been resolved, resulting in the suspension of the renewal process.
Consequently, PFI Securities was unable to conduct any transactions on Monday, leaving approximately 5,500 active customers in a difficult position. The company reportedly holds assets worth around Tk700 crore.
Company officials said the board of directors held a meeting on Monday evening to explore solutions for addressing the deficit. They assured stakeholders that the issue would be resolved soon.
The BSEC's letter stated that as of 21 August, PFI Securities had a deficit of Tk28.18 crore in its consolidated customer account. Consequently, its renewal application, submitted on 17 November, was not approved. Additionally, during its 920th commission meeting, the BSEC rejected the company's request for an extension to resolve the deficit.
Additionally, the commission imposed several restrictions, including a ban on foreign travel for the company's directors and management, freezing of the company's bank accounts, and blocking of all BO (Beneficiary Owner) accounts.
A Consolidated Customer Account (CCA) is a dedicated bank account maintained by stockbrokers to hold unused cash from clients' BO accounts. The use of these funds is strictly limited to paying for securities purchased by clients or collecting commissions or fees owed by them. Any unauthorised use of CCA funds can result in a deficit, which violates regulatory rules.
