Order Regarding Affairs of Multi Securities and Services Limited and Related Individuals

Bangladesh Securities and Exchange Commission
Market Intelligence and Investigation Division Inspection, Enquiry and Investigation Department www.sec.gov.bd

Order

Date: 22 August 2024

No. BSEC/IEID/Enquiry/2024/65/379/419: -Whereas the enquiry committee under the Commission’s Order No. BSEC/IEID/Enquiry/2024/65/379 dated 04 July 2024, has been conducting enquiry relating to affairs of Multi Securities and Services Limited and related individuals or companies;

And whereas the enquiry committee has conducted spot visit to the office premise of the Multi Securities and Services Limited (the stock-broker) dated 21 August 2024 at 11.30 am, but the respective officials of the stock broker have denied to assist or facilitate the enquiry committee and also expressed incapability to produce any documents or to allow the visit of the office premise requested by the members of the Enquiry Committee, which is a clear violation of sub-section (3) of section 21 of the Securities and Exchange Ordinance, 1969 and ধারা ১৭(৩) of the বাংলাদেশ সিকিউরিটিজ অ্যান্ড এক্সচেঞ্জ কমিশন আইন, ১৯৯৩;

And whereas the enquiry committee has not been able to scrutinize any back-office software of the stock broker, relevant books of record and information and to collect evidence of different document; the enquiry committee has raised concerns regarding the safety and protection of assets and securities of the account holders (i.e., BOID holders) of the said stock-broker and securities preserved under the control of the Depository Participant (DP) of the stock-broker; and also the enquiry committee is in darkness about the illegal/suspicious transactions between or among Multi Securities & Services Limited, Mr. Hasan Taher Imam and, Mr. Chowdhury Nafeez Sarafat or related person thereof;

Now, therefore, in exercise of the powers conferred by section 20A of the Securities and Exchange Ordinance, 1969 read with the ধারা ১৪ of ডিপজিটরি আইন, ১৯৯৯, the Commission hereby instructs the depository and the stock-exchange(s) to ensure the safety and protection of the interest of the investor and to secure custody of securities under the Multi Securities and Services Limited, as follows:

1. The Non- Margin Limit/ Free Limit facility available under the Dhaka Stock Exchange (TREC Holder’s Margin) Regulations, 2013 and the Chittagong Stock Exchange (TREC Holder’s Margin) Regulations, 2013 shall remain suspended till further order given by the Commission;
2. Payment of dividends due against the ownership shares of the Exchange(s) by Multi Securities and Services Limited shall be suspended till further order given by the Commission;
3. Eligibility of quota in IPO/RPO/QIO as Eligible Investors/Qualified Investors shall be suspended till further order given by the Commission;
4. Renewal of certificate of registration as Stock Broker and Depository Participant of Multi Securities and Services Limited shall be suspended till further order given by the Commission;
5. The facility of opening new branches or digital booths for Multi Securities and Services Limited shall be suspended till further order given by the Commission;
6. All types of trades and transfers of securities of any BOID (both mother and link) in the name of Mr. Md. Jalal Ekramul Kabir S/O Late Ahammad Kabir Khan (TREC Representative of Multi Securities & Services Limited), Mr. Hasan Taher Imam S/O Late T.I.M Hasan Imam, Mr. Chowdhury Nafeez Sarafat S/O Mr. Sarafat Hossain Chowdhury shall be suspended till further order given by the Commission;
7. Any request of payment or transfer of securities to the persons mentioned at clause # 6 from Multi Securities and Services Limited shall be suspended till further order of the commission;
8. After adjusting the shortfall of the money in the consolidated customers’ account and securities of the customers under Multi Securities and Services Limited, the respective Exchange shall conduct special supervision of the TREC Holder Company for at least one year. Besides, the Consolidated Customers’ Account (CCA) and the securities kept in the respective Depository Participant (DP) will be examined twice in every month; and
9. Dhaka Stock Exchange PLC, Chittagong Stock Exchange PLC and Central Depository Bangladesh Limited will take necessary measures to implement the above decision of the Commission and submit a report to the Commission accordingly along with the holding status in the BOID (both mother and link) mentioned at clause # 6 within next 07(seven) working days.

This order shall have the immediate effect.

By order of the Bangladesh Securities and Exchange Commission

(Signature)
Khondoker Rashed Maqsood
Chairman.