Travel ban sought on top Sinha Securities officials

The Bangladesh Securities and Exchange Commission (BSEC) has sought a travel ban on directors, the managing director and CEO of Sinha Securities for a deficit in the brokerage house's consolidated customers' account (CCA).

A CCA is an account held by a broker at any scheduled bank to receive investors' deposits for buying stocks and paying their earnings.

The stock market regulator took the decision by holding a meeting on its Agargaon premises in the capital yesterday.

In a press release, the BSEC said it had rejected the broker's appeal seeking more time to adjust the CCA.

Moreover, the regulator decided to freeze all bank accounts and beneficiary owner accounts of the owners of the brokerage house.

Reza-Ur-Rahman Sinha, CEO of the brokerage house, did not receive phone calls from The Daily Star yesterday for comment.

Earlier, the BSEC had decided to do the same for Dhanmondi Securities.

But the latter had promptly met the deficit in its CCA and assured to refrain from keeping any deficit in the future, for which no punitive measures were taken against it, said the BSEC.

Meanwhile, the BSEC said Sinha Securities would also face punitive measures as per an order it had issued earlier this month.

In the order, the BSEC had said any brokerage with a deficit in its CCA would not be allowed to provide margin loans and would not be entitled to dividends from stock exchanges.

Additionally, the brokerage houses will not enjoy quotas of initial public offerings, repeat public offerings or qualified initial offerings.

Furthermore, the brokerage houses will not be allowed to renew their licences or open any new branch, including digital booths.

The stock market regulator also informed that the stock exchanges will continue to monitor the brokers for at least two years, even after they adjust their CCA deficit to ensure compliance.

The country's bourses will check the CCAs at least twice a month, the BSEC said.