The Bangladesh Securities and Exchange Commission (BSEC) has asked the Dhaka Stock Exchange (DSE) to explain why it failed to provide a clear regulatory recommendation on the renewal of Monarch Holdings Limited`s stock-broker and stock-dealer registration.
The decision was taken at the BSEC`s 1022nd commission meeting, chaired by BSEC Chairman Masud Khan, according to a press release issued on Tuesday.
The securities regulator said the DSE had been given an opportunity to address procedural shortcomings but still did not take a definitive position either in favour of or against renewing Monarch Holdings` registration.
The commission identified what it described as a violation of Rule 8(3) of the Securities and Exchange Commission (Stock-Dealer, Stock-Broker and Authorised Representative) Rules, 2000.
According to the BSEC, the DSE initially issued a positive recommendation for renewing Monarch Holdings` stock-broker and stock-dealer certificates without properly completing the required information in "Form G", which the regulator said amounted to a breach of its regulatory responsibilities.
The commission also pointed to what it called inconsistencies in the exchange`s handling of the matter. It said that although the DSE later submitted the missing information after being asked to explain the incomplete form, it still stopped short of providing a clear recommendation on the renewal application.
The BSEC said the absence of a definitive regulatory opinion had delayed the decision-making process.
The commission has directed the DSE to submit a formal explanation within five working days of receiving the letter, outlining why it failed to make a specific recommendation in accordance with the law.
It also instructed the stock exchange to provide a final recommendation on Monarch Holdings Limited`s registration renewal, supported by a detailed regulatory assessment as required under the 2000 Rules.
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