Sylhet Metro City Securities sold clients’ shares without consent

September 27, 2014

CDBL informs CSE
Central Depository Bangladesh Limited has found that Sylhet Metro City Securities, a brokerage house of the Chittagong Stock Exchange, committed different irregularities as the firm sold and transferred its clients’ shares without taking their consent, CSE sources said.
The CDBL informed the matter to the CSE following a query from the port city bourse, they said.
The port city bourse was conducting an investigation into the activities of Sylhet Metro City Securities following complaints from its clients.
Beneficiary owners’ account holders at Sylhet Metro City Securities in written complaints against the brokerage house said that they found discrepancies in their portfolio statements given by Sylhet Metro City Securities by comparing it with the current shareholding statements collected from CDBL, the CDBL said in its letter to the CSE.
Investors also found some of their shares missing which were presumably sold or transferred off-market from the account without the account holders’ consent, the CDBL letter said.
The letter also said that it had already informed the CSE time to time about off-market transfer of shares by Sylhet Metro City Securities.
‘The instances are most likely that shares bought by investors were not credited to their BO accounts, shares sold from investors’ BO accounts without getting their consent and shares moved from investors’ BO accounts without their consent via off-market unauthorised transactions,’ the CDBL said.
The activities of Sylhet Metro City Securities are violation of code of conduct and securities laws, said CDBL.

-With New Age input

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