The regulatory body Bangladesh Securities and Exchange Commission (BSEC) has directed both the stock exchanges and the Central Depository Bangladesh Limited (CDBL) not to allow transactions from closed or closed Beneficiary Owners (BO) accounts. Similar instructions have been given to BRAC EPL Stock Brokerage and HSBC Bank. Only asked to deal with correct or genuine BO.
BRAC EPL stock brokerage has been accused of illegally collaborating with the BO recently to stop selling shares to foreigners. BSEC wants an explanation from the organization for this.
It is learned that shares of HSBC, a foreign-invested multinational bank, which was closed four years ago, have been retained as custodian. A large number of shares have been sold on May 11 from this BO account. The BSEC considers this incident unusual. For this reason, BSEC seeks clarification from BRAC EPL Stock Brokerage, a subsidiary of BRAC Bank, the company which manages BO accounts. The regulatory body also sought clarification from HSBC.
In light of these unusual transactions, the commission today issued a letter directing it to close or stop transactions from dummy or fake BO accounts.
In the letter, the commission said that the monitoring of BSEC’s Market Surveillance and Intelligence Department has raised the issue of regular transactions from closed / dummy / fake BOs. But internationally there is no example of such BO transactions. Besides, the explanation of the brokerage houses doing such transactions in the country is also not satisfactory. Even the concerned institutions could not mention in which law such transactions can be done from BO.
In this situation the commission has instructed to transact with correct (genuine) BO.
Regarding genuine or genuine BO, BSEC Executive Director and spokesperson Mohammad Rezaul Karim said, “BO that has been opened with correct information and BO that has securities, can be sold only from that BO.” Securities of one BO cannot be sold with another B