The Bangladesh Securities and Exchange Commission (BSEC) has sought a formal explanation from the Dhaka Stock Exchange PLC (DSE) regarding its failure to provide a definitive regulatory recommendation for the registration renewal of Monarch Holdings Limited. The decision was reached during the 1022nd commission meeting held today, presided over by BSEC Chairman Masud Khan, said a press release. The commission is demanding to know why the exchange failed to take a specific stance for or against the renewal, despite being given prior opportunity to rectify procedural omissions.
Regulatory Breach Identified
The commission identified a specific breach of Rule 8(3) of the 'Securities and Exchange Commission (Stock-Dealer, Stock-Broker and Authorized Representative) Rules, 2000'. According to the BSEC, the DSE initially provided a "Positive" recommendation for the registration renewal of Monarch Holdings Limited's stock-broker and stock-dealer certificates without properly completing the required information in "Form G." The commission characterized this as a violation of established rules and a clear failure of the DSE's regulatory responsibilities.
Inconsistent Behavior and Directives
The BSEC noted that the exchange has exhibited inconsistent behavior throughout the process. When previously asked for an explanation regarding the incomplete "Form G," the DSE submitted the missing data but still refrained from providing a specific regulatory recommendation. The commission observed that the exchange's refusal to offer a clear position—either for or against the renewal—has hindered the regulatory process. In light of these findings, the commission has directed the DSE to provide a formal explanation within 5 (five) working days from the receipt of the letter, justifying why it failed to provide a specific recommendation in accordance with the law. Furthermore, the BSEC has mandated that the exchange submit a definitive recommendation regarding the renewal of Monarch Holdings Limited, supported by a thorough analysis and regulatory assessment as required by the 2000 Rules.
