Bangladesh: DSE suspends GM Asad over share trading allegations

Dhaka, August 15, 2014 (New Age): The board of directors of Dhaka Stock Exchange on Thursday suspended the bourse’s general manager Khandaker Asad Ullah as per a regulatory order over the allegations of share trading violating rules. The DSE board on the day also formed a two-member investigation committee as part of the Bangladesh Securities and Exchange Commission’s order for taking departmental action against Asad, DSE officials told New Age after the board meeting. DSE GMs Jiban Chandra Das and Md Samiul Islam were made members of the committee. The committee was asked to submit its report in 10 days. The bourse will take its next course of action against Asad based on the investigation report, the DSE officials said. The investigation committee was also asked to interrogate DSE senior executive Bimal Chandra Mondal as the BSEC found that he had cooperated Asad in different ways, they said. DSE chairman former justice Siddiqur Rahman Miah presided over the board meeting where other DSE directors were present. The BSEC on Wednesday evening issued a letter asking the DSE to suspend Asad based on the commission’s decision made on Tuesday. The commission following an investigation against the DSE GM decided to ask the bourse to suspend Asad. The commission made the decision after conducting a probe against Asad based on a complaint that there were shares worth over Tk 6 crore in the beneficiary owners account of his wife, BSEC sources said. As per the service rules of the DSE, no DSE official and his or her family members can open BO account and trade shares. BSEC sources said that they thought Asad’s money was basically invested through his wife’s account. A BSEC press release said that the BSEC investigation found that the alleged irregularities of Asad were proved. The press release, however, did not mention the irregularities while BSEC officials declined to give details to reporters. The release said following the BSEC findings the commission decided to ask the DSE to suspend Asad from his post and take departmental actions for the ‘greater interest of the capital market’. As per the complaint filed with the BSEC in 2013, Tk 6.90 crore was withdrawn from three BO accounts of his wife at different merchant banks. The accounts of his wife were with AB Investment, Prime Bank Investment and NCC Securities and Financial Services Limited. The commission in October 2013 had formed a three-member committee to probe the allegation.