SEC Annual Report,1998-99 

SUPERVISION & ENFORCEMENT DEPARTMENT
Supervision and Monitoring Section of the SEC is responsible for supervising and monitoring of the operations and activities of the stock exchanges, stock dealer/brokers which covers the following important aspects:
  • Trading of securities and price movements
  • Monitoring of Stock Exchanges and Members (Stock Dealers; Stock brokers)
  • Handling of investors’ grievances/complaints against issuers and stock dealers/brokers etc.
  • Monitoring and supervision of the trading, clearance and settlement systems of the Stock Exchanges
  • Taking actions against the defaulters/violators of the securities laws
During the period an Investors’ Complaint Format has been developed which has been put in the internet as well. Steps have been taken to monitor the financial position of the members of the stock exchanges. 

As per amendments made to the regulations 7 and 9 of the Settlement of Stock Exchange Transactions Regulations, 1998 of the Chittagong Stock Exchange, a member Amin Securities  & Consultants Ltd. (M. Code –128) was suspended  by CSE for default in payment/delivery of securities more than once in the calendar month of May. After settlement of the defaults with CSE along with penalty the member was allowed by SEC to resume trading with strong warning to the effect that SEC may not consider any default of this member in future and may take appropriate measures against him as per law.
 

The status of complaints received from investors at a glance during July 1998- June 1999:
 

Nature of Public Complaints
Number of Public Complaints
Delayed or non-receipt of dividend
27
Delayed or non-issuance of allotment letters of securities
1
Loss of share certificates 
2
Delay in transferring shares 
4
Miscellaneous
23
Delayed or non-splitting of shares
2
Total
59
Resolved
21
Pending
38

During the year the following listed companies and brokers were penalized for various defaults

Against listed companies
 

Name of the company Amount of Penalty imposed (Tk.)
Date
Olympic Industries Limited 1 lac 27th October 1998
Bangladesh Chemical Industries Ltd. 50 thousand 27th October 1998
Bangladesh Zipper Industries Ltd. 50 thousand 27th October 1998
Bangladesh Dyeing & Finishing Industries Ltd. 1 lac 21st December 1998
Rupan Oil & Feeds Limited 1 lac 7th January 1999
M. Hossain Garments  1 lac 11th February 1999

Against broker/dealar
 

Name of the broker/dealar Amount of Penalty imposed (Tk.) Date
Sinha & Co.  1 lac 8th February 1999
Dawn International,  1 lac 8th February 1999
Azam Brothers 25 thousand 15th February 1999