The Bangladesh Securities and Exchange Commission (BSEC) has questioned the Dhaka Stock Exchange (DSE) over its failure to provide a clear regulatory recommendation on the renewal of stock broker and stock dealer registration certificates of Monarch Holdings Limited, raising concerns over the exchange’s regulatory oversight responsibilities.
The market regulator took the decision at its 1,022nd commission meeting held on Tuesday, chaired by BSEC Chairman Masud Khan, after reviewing DSE’s recommendation regarding Monarch Holdings’ registration renewal.
According to a press statement, BSEC found that DSE had recommended renewal of the registration certificates without properly completing the required information in Form ‘Cha’ under Rule 8(3) of the Securities and Exchange Commission (Stock-Dealer, Stock-Broker and Authorised Representative) Rules, 2000.
The commission said providing a positive recommendation without fulfilling the mandatory requirements of the prescribed form was inconsistent with the rules and indicated a failure by DSE to perform its regulatory responsibilities.
BSEC later sought an explanation from DSE on the matter. Although DSE subsequently submitted the completed form and required information, it did not provide any specific regulatory recommendation either in favour of or against the renewal of Monarch Holdings’ registration certificates.
Following this, BSEC decided to seek further explanation from DSE on why it failed to provide a specific recommendation as required under the rules.
The commission also directed DSE to submit a detailed regulatory assessment on Monarch Holdings’ registration renewal within five working days of receiving the explanation letter. The assessment must include necessary information, analysis and a clear recommendation on whether the certificates should be renewed.
The move comes as BSEC continues to tighten regulatory scrutiny over capital market intermediaries and strengthen accountability among stock exchanges responsible for monitoring market participants.
BSEC said the decision was taken on behalf of the commission by Executive Director and Spokesperson Md Abul Kalam.
