On Jul. 18, BNG SEC issued rules on unauthorized utilization of funds.
BNG SEC issued directive on the unauthorized utilization of funds by stock brokers and dealers, following observations that funds were not always used for core business.
Document dated Jul. 18, 2024, received from BNG SEC Jul. 25, summarized on Jul. 29.
Background
BNG SEC shared observations from the audited financial statements (AFS) of stock brokers and stock dealers for year ending Jun. 30, 2023 and compliance report status.
In this regard, BNG SEC observed that several stock-brokers and stock-dealers have been using theirfunds for the purpose other than their core business.
Directions
BNG SEC directs the Dhaka Stock Exchange to supervise and monitor that the funds of these stock brokers and stock dealers are brought back within Oct. 31, 2024.
The funds must be used in core business for which BNG SEC has awarded the certificate of registration, as per rule 8(2) of the Securities and exchange rules, 2020.
The Dhaka Stock Exchange must submit a report to BNG SEC on the status of compliance in this regard, within seven working days from the aforementioned date.
