Three cos get listing approval from DSE

FE Report



Dhaka Stock Exchange (DSE) temporarily suspended its General Manager (GM) of HR and Admin Khandaker Asad Ullah Thursday for his alleged involvement in the share trading by violating service rules, officials said.

The decision was taken at a board meeting following an order issued by the Bangladesh Securities and Exchange Commission (BSEC).

At Thursday's meeting the premier bourse has also approved the listing of three companies -- Shurwid Industries, Far East Knitting and Dyeing and Tung Hai Knitting and Dyeing.

The securities regulator ordered the DSE on August 12 last to suspend its GM Mr. Asad immediately as his alleged involvement in share business has been proved by the BSEC investigation committee.

 "The allegations of breaching the securities rules and other ones by Mr. Asad have been proved without any doubt. That's why the regulator has ordered the premier bourse to suspend the GM temporarily for the sake of capital market and bringing disciplines in the stock exchange," the BSEC said.

The BSEC also said by suspending the DSE GM immediately, the premier bourse will have to inform the regulator about the post administrative actions.

As per the DSE board decision, the temporary suspension of Mr. Asad came into effect from yesterday (Thursday).

The DSE has also formed a two-member probe body to carry out further investigation into the complaints of the carrying out share business by the DSE GM Mr. Asad.

"The DSE will provide an opportunity to Mr. Asad for upholding his opinion regarding the complaints. After conducting further routine work the DSE board will deliver its final decision regarding Mr. Asad," said a member of the DSE board.

Some of DSE officials said Mr. Asad was involved in share trading when there was no circular barring the share trading by any employee and executive.

The DSE board member has ruled out such logic stating that the DSE service rules had always the restriction on share trading by the employees and executives.

The same restriction has also been included in the demutualisation act," the board member said.

On October 9, 2013 the BSEC formed a three-member probe committee which found the proofs of carrying out share business by the DSE GM Mr. Asad.

The DSE GM reportedly carried out share business through three BO accounts.

As per a DSE circular issued on April 26, 2010, no employee and executive will be able to carry on share business directly or indirectly.

The circular will also be violated if the employees and executives carry on business by opening BO accounts in the name of family members or others.

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