SEC Annual Report,1998-99 

LEGAL SERVICE DEPARTMENT
Status of Share Scam Cases 

Although initially the Court of 1st Additional Sessions Judge, Dhaka took up all the 10 Cases for hearing but after four days of hearing in Sessions Case No. 1048,1049 and 1050 the Jurisdiction to try Criminal Cases within the Dhaka Metropolitan City has been transferred to the newly constituted Court of Metropolitan Sessions Judge, Dhaka. As a result, all the sessions cases stood transferred to the Court of Metropolitan Sessions Judge who in turn transferred all the cases to the Court of Additional Metropolitan Sessions Judge, 3rd Court, Dhaka.

Against the transfer order 2, accused company (Beximco Pharmaceuticals Ltd, Shinepukur Holdings Ltd) and one broker/dealer (Doha Securities) filed Criminal Revision before the  High Court.

A Division Bench of the High Court Division of the Supreme Court comprising Mr. Justice Gholam Rabbani and Mr. Justice Latifur Rahman took up all the Criminal Revision/Misc. cases for hearing. The Division Bench of the High Court Division vide its Judgement and order dated 15.06.99 set aside the order passed by Metropolitan Sessions Judge dated 7th April 1999 and transferred all the cases (BEXIMCO Pharmaceuticals Ltd., Shinepukur Holdings Ltd. and Doha Securities) to the Court of Metropolitan Sessions Judge 2nd Court for disposal. SEC already filed the Provisional Leave Petition for appeal in the Appellate Division of the Hon’ble Supreme Court challenging the aforesaid Judgement of the High Court Division and obtained stay for four weeks.

The charge framing hearing of 7 Cases started in the Court of Additional Metropolitan Session Judge 3rd Court, Dhaka.

The 3rd Additional Metropolitan Sessions Judge framed charge against the following accused, namely-

  • SES Company (15th March 1999)
  • First Capital securities Ltd.(15th March 1999)
  • Rupon Oil and Feed Ltd.(25th March 1999)
  • Securities Consultants Ltd. (16th March 1999).
  • Imtiaz Hussain of Imtiaz Hussain & C0.(4th April 1999)
  • HMMS Financial and Consulting Service Ltd. (22nd April 1999)
Another 5 Share Scam Cases are pending before the High Court Division with  stay orders.

The following accused filed Criminal Revision/Misc. Case before the High Court and obtained order of stay.

  • Runa Alam of SES Company
  • M.K. Mohiuddin of First Capital Securities
  • Rizwan Bin Farook of First Capital Securities
  • Mostaque Ahmed Sadeque of HMMS Financial Consulting & Securities Ltd.
  • Sharif Ataur Rahaman of HMMS Financial Consulting & Securities Ltd.
  • Syed Mahbub Murshed of HMMS Financial Consulting & Securities Ltd.
  • Hemayet uddin Ahmed of HMMS Financial Consulting & Securities Ltd.
  • Imtiyaz Hossain of Imityaz Hossain & Company Ltd
  • M.G. Azam Chowdhury of Sceurities Consultants Ltd.
  • Shahidulla  of Sceurities Consultants Ltd.
  • Abu Tayeb of Chittagong Cement Clinkers Ltd
  • Rakibur Rahman of Chittagong Cement Clinkers Ltd
  • A.S .M Sahidul Haque Bulbul of Chittagong Cement Clinkers Ltd
A Division Bench of the High Court Division of the Supreme Court comprising Mr. Justice Gholam Rabbani and Mr. Justice Latifur Rahman took up all the Criminal Revision/Misc. cases for hearing. Vide its two different Judgements and orders dated 23.06.99 the Court discharged two accused namely Mr. Runa Alam, Chairman and Managing Director of SES Company Ltd. and Mr. M.K.M. Mohiuddin of First Capital Securities Ltd.

By another Judgement and order dated 23.06.99 the said Division Bench set aside all the other charge framing orders passed by Additional Metropolitan Sessions Judge 3rd Court Dhaka and sent back the cases to the Court of Metropolitan Sessions Judge Dhaka for disposal.

Status of Other Cases:

The total 16 (Share Scam 15 and 01Certificate Case) Cases were filed by SEC and 36 Cases against SEC have been filed. 

ACTS, RULES, REGULATIONS, ORDERS & AMENDMENTS PROMULGATED DURING 1998-99 (JULY- JUNE)


 
SL.  REF. NO. & DATE
REGARDING
 CLASSIFICATION
01. 13th April 1999 The Depositories Act, 1999 Act
02.

 

 SEC/Sec-7/SER-1987/98-138

4th June 1998

 Amendment in the Securities and Exchange Rules, 1987 to allow telephonic order to buy or sale of securities of listed companies. Rules/Amend-ment of Rules .

Amendment 
03. SEC/Sec-7/RIR-98/137

27th July 1998

 Right Issue Rules Rules
04. SEC/Sec-7/P/R-98/140

3rd January 1999

 Public Issue Rules, 1998 Rules
05. SEC/Section-5/98-542/141

28th April 1999

 Margin Rules, 1999 Rules
06. SEC/Sec-7/PIR-98/143

28th April 1999

 3 Amendments in Public Issue Rules, 1998 to publish the vetted prospectus on the SEC’s web site for the period of subscription of the issue, to add a word to Sub-Rule (2) and to affix holograms on the certificates at the time of issuance. Amendments of

Rules
07. SEC/Section-7/SER-1987/142

6th May 1999

 Amendment in the Securities and Exchange Rules, 1987 on counter party identification. Amendment of

Rules 
08. SEC/Section-7/SER-1987/143

19th May 1999

 Amendments in the Securities and Exchange Rules, 1987. Amendments of

Rules
09 SEC/Section-7/SER-1987/144

3rd June 1999

 Amendments in the Securities and Exchange Rules, 1987. Amendment of

Rules
10. SEC/Section-7/99-140

28th April 1999

 Order to impose conditions on all public listed companies regarding securities transfer formalities, splitting of securities into market lot and power to close the company register.
O r d e r s

Order
11. SEC/Section-7/Cap.Sanction/

99-144,18th May 1999

 Order to exempt all the companies from provision of section 2A(2)(a) of the Securities and Exchange Ordinance, 1969 (XVII of 1969)  Order
12. 6th May 1999 Amendment to regulations 7 and 9 of the Settlement of Stock Exchange Transactions Regulations, 1998 of Dhaka Stock Exchange (DSE) Limited

Amendment to regulations 7 and 9 of the Settlement of Stock Exchange Transactions Regulations, 1998 of Chittagong Stock Exchange (CSE) Ltd. 

 Amendments of

Regulations (DSE)
 
 

Amendments of

Regulations (CSE)