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
that cover 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;
-
Monitoring
and supervision of the trading, clearance and settlement systems of the
Stock Exchanges;
Taking actions against the defaulters/violators of the securities laws.
The
statement given below shows the complaints status during July ’99-June
2000:
Complaint Statement
July 1999--June
2000
| Nature
of Public Complaints |
Number
|
| Delayed
or non-receipt of dividend |
8
|
| Delayed
or non-issuance of allotment letters of securities |
4
|
| Loss
of share certificates |
4
|
| Delay
in transferring shares |
2
|
| Delay
in splitting shares into market lot |
2
|
| Miscellaneous |
57
|
| Total |
77
|
| Resolved |
53
|
| Pending |
24
|
Price Sensitive
Information (PSI) Status:
SEC
issued letters to the following companies for non-compliance of SEC directives
dated February 23, 2000 regarding press publication on Price Sensitive
Information (PSI):
|
Name
of the Company
|
Letter
Issued
|
Remarks
|
| Bengal
Biscuits Ltd. |
25.05.2000
|
Instructed
to ensure due compliance of SEC directives in future. |
| British
American Tobacco Bangladesh Co. Ltd. |
08.05.2000
|
Instructed
to ensure due compliance of SEC directives in future. |
| Chittagong
Cement Clinker Grinding Co.Ltd |
02.05.2000
|
Instructed
to ensure due compliance of SEC directives in future. |
| Dynamic
Textile Mills Ltd. |
03.05.2000
|
Warned
to ensure due compliance of SEC directives in future. |
| National
Tubes Ltd. |
02.05.2000
|
Instructed
to ensure due compliance of SEC directives in future. |
| Rahim
Textile Mills Ltd. |
02.04.2000
|
Warned
to ensure due compliance of SEC directives in any circumstances. |
| Renata
Ltd. |
14.06.2000
|
Instructed
to ensure due compliance of SEC directives in future. |
| Safko
Spinning Mills Ltd. |
28.05.2000
|
Instructed
to ensure due compliance of SEC directives in future. |
Letter to the
daily “The Independent”:
BGIC
sent a letter to the daily “The Independent” with intimation to the Commission
protesting the news published on 24.05.2000 captioned, ”BGIC suggests 30%
dividend”.
The
Commission issued a letter to the editor of the said daily stating that
such news is highly price sensitive for the capital market since investors
make investment decision based on market information and as such, due care
needs to be taken in publishing such news.
Default
in payment/delivery of securities more than once in the calendar month
by members of DSE and CSE:
As
per amendments made to the regulations 7 and 9 of the Settlement of Stock
Exchange Transactions Regulations, 1998 of the Dhaka and Chittagong Stock
Exchanges, a few members were suspended by DSE and CSE for default in payment/delivery
of securities more than once in the calendar month for the above mentioned
period. After settlement of the defaults with DSE and CSE along with penalty
the members were allowed by SEC to resume trading with strong warning to
the effect that SEC may not consider any default of these members in future
and may take appropriate measures against them as per law.
The
name of the members and nature of defaults are mentioned below:
DHAKA STOCK EXCHANGE
|
Sl. No.
|
Name of the
Member
|
Member
Code
|
Period in
Which Defaulted
|
Particulars
of Default
|
Remarks
|
|
1.
|
Ragib
Ali Securities |
101
|
June
1999 |
For
dishonor of check and for delivery of shares |
After
settlement of the defaults with DSE 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 vide letter dated 5th July,
1999. |
|
2.
|
Md.
Fakrul Islam & Co. |
90
|
July
1999 |
For
dishonor of check |
After
settlement of the defaults with DSE 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 vide letter dated 22nd July,
1999. |
|
3.
|
Capital
Roots Ltd. |
145
|
July
1999 |
For
dishonor of check and delivery of shares |
After
settlement of the defaults with DSE 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 vide letter dated 8th August,
1999. |
|
4.
|
Md.
Fakrul Islam & Co. |
90
|
October
1999 |
For
dishonor of check |
After
settlement of the defaults with DSE along with penalty the member was allowed
by SEC to resume trading vide letter dated 19th December, 1999. |
|
5.
|
Zahid
Hossain & Co. |
110
|
November
1999 |
For
dishonor of check and delivery of shares |
After
settlement of the defaults with DSE along with penalty the member was allowed
by SEC to resume trading vide letter dated 19th December, 1999. |
|
6.
|
JR
Capital Management Ltd. |
107
|
February
2000 |
For
dishonor of check |
After
settlement of the defaults with DSE 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 vide letter dated 1st March,
2000. |
|
7.
|
Jahangir
Kabir Chowdhury & Co. |
179
|
May
2000 |
For
dishonor of check |
After
settlement of the defaults with DSE along with penalty the member was allowed
by SEC to resume trading with the expectation that the default will not
recur in future vide letter dated 18th May, 2000. |
CHITTAGONG STOCK
EXCHANGE
| Sl.
No. |
Name
of the Member |
Member
Code |
Period
in Which Defaulted |
Particulars
of Default |
Remarks
|
|
1.
|
Alpha
Securities Ltd. |
001
|
September
1999 |
Dishonor
of check |
After
settlement of the defaults with DSE 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 vide letter dated 25th October,
1999. |
|
2.
|
Amin
Securities and Consultants Ltd. |
128
|
September
1999 |
Dishonor
of check |
A
letter was issued on 7th March 2000 stating that considering
the request of the company and confirmation about maintaining of the Member’s
liquidity, resumption of trading may be allowed to the said defaulted Member
(M/s Amin Securities & Consultants Ltd.) with a 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. |
|
3.
|
North
West Securities Ltd. |
019
|
November
1999 |
Dishonor
of check |
A
letter was issued on 27th February, 2000 stating that considering
the request of the company and also that this is the first case, resumption
of trading may be allowed to the said defaulted member (M/s North West
Securities Ltd.) with a 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. |
|
4.
|
Diamond
Securities & Management Ltd. |
104
|
January
2000 |
Dishonor
of check |
A
letter was issued on 27th February, 2000 stating that considering
the request of the company and also that this is the first case, resumption
of trading may be allowed to the said defaulted member (M/s Diamond Securities
& Management Ltd.) with a 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. |
|
5.
|
Inter
Continental Securities Ltd. |
094
|
May
2000 |
Dishonor
of check |
After
settlement of the defaults with CSE along with penalty the member was allowed
by SEC to resume trading with the expectation that the default will not
recur in future, and also that any future default will be dealt with seriously
as per securities law vide letter dated 31st May, 2000. |
During the year
the following listed company was penalized for non-submission of half-yearly
reports:
| Name
Of the Company |
Reasons
for Penalty |
Amount
of Penalty
Imposed(Tk.) |
Date |
Dynamic
Textile
Industries
Limited |
Non-submission
of half-yearly reports for the half-year ended 31st March 1999 |
50 thousand |
9th
December
1999 |
Besides,
during the year the following listed companies were warned for non-compliance
of the securities law in respect to submission of the half-yearly reports.
Warning letters were issued to the companies for strict compliance of the
securities law in future to avoid penal action:
| Sl.
No. |
Name
of the Company |
Reasons
for Warning |
Date
of Warning letter issued |
|
1.
|
Kohinoor
Chemical Company (BD) Limited |
Submission
of half-yearly reports for the half-year ended 31st December
1998. |
18th
November 1999 |
|
2.
|
Rahman
Chemicals Ltd. |
Submission
of half-yearly reports for the half-year ended 30th June 1999. |
13th
February 2000 |
|
3.
|
Perfume
Chemical Industries Limited |
Submission
of half- yearly reports for the half-year ended 31st December
1998. |
13th
March 2000 |
|
4.
|
Texpick
Industries Limited |
Submission
of half-yearly reports for the half-year ended 31st December
1998. |
28th
March 2000 |
|
5.
|
Dynamic
Textile Industries Limited |
Submission
of half-yearly reports for the half-year ended 31st March 1999. |
28th
March 2000 |
|
6.
|
Bangladesh
Dyeing and Finishing Industries Ltd. |
Submission
of half-yearly reports for the half-year ended 30th June 1999. |
31st
May 2000 |
|
7.
|
Bangladesh
Luggage Industries Ltd. |
Non-submission
of half-yearly reports for the half-year ended 31st December
1998. |
31st
May 2000 |
|
8.
|
Bangladesh
Autocars Ltd. |
Submission
of half-yearly reports for the half-year ended 31st December
1998. |
31st
May 2000 |
|
9.
|
STM
Limited |
Submission
of half-yearly reports for the half-year ended 30th June 1999. |
31st
May 2000 |
|
10.
|
Bangladesh
Monospool Paper Mfg. Co. Ltd. |
Submission
of half-yearly reports for the half year ended 31st December
1999. |
29th
May 2000 |
|
11.
|
Pharmaco
International Limited |
Submission
of half-yearly reports for the half year ended 31st December
1999. |
12th
June 2000 |
Federal
Insurance Company Limited was required to pay dividend @ 12% per share
declared on 04.12.99 within 60 (sixty) days from the date of declaration
thereof i. e. on or before 02.02.2000 as well as to furnish a compliance
report thereof to the Commission within 7 (seven) days of expiry of the
aforesaid period of sixty days, i. e. by 09.02.2000. But the company delayed
in furnishing the requisite compliance report on payment of declared dividend
by one month. The Commission has cautioned the company to ensure due compliance
of the securities law in future under any circumstance. |
SEC
Annual Report,1999-2000
