Two brokerage firms to face regulatory inspection

The Bangladesh Securities and Exchange Commission (BSEC) has initiated inspections at two brokerage firms— NBL Securities Ltd and United Financial Trading Company Ltd (UFTCL) – to check for any irregularity within their operations.

BSEC Additional Directors Abul Kalam Azad, Maruf Hassan, Dhaka Stock Exchange's (DSE) Senior Manager Bazlur Rahman and Central Depository Bangladesh Ltd (CDBL) Deputy Manager Sharif Ali Irteza have been assigned to visit UFTCL offices and branches, inspect their books of accounts, records and documents in early January.

On the other hand, BSEC Additional Director Golam Kibria, Assistant Director Ali Ahsan, DSE Deputy Manager Ikram Hossain and CDBL Deputy Manager Afsar Uddin will inspect NBL Securities offices.

The BSEC has directed the brokerage firms to cooperate with the inspection teams concerned, while the inspection teams have been asked to submit their reports within 30 working days of inspection.

A BSEC official said the securities regulator initiated to look into some brokerage firms following media reports or stakeholder complaints that the firms were deviating from their strict rules of operations.

According to a recent media report, the UFTCL allowed some of its clients to buy shares without the needed money deposited.

Contacted, UFTCL CEO Hassan Jabed Chowdhury said, such minor deviations accidentally happen in cases of client's failure to timely ensure the bank transactions settled, which the brokerage firm corrects on the following banking days.

"In a competitive brokerage market, we need to consider our clients' temporary problems for the sake of a sustainable relationship," he added.

Following a recent series of events where a very few brokerage culprits try to embezzle their clients' money, the bourses and the securities regulator are increasing their efforts to monitor brokerage firms, said a BSEC official.