BSEC gives seven firms until April to fix shortfalls, allows four to keep operating
The capital market regulator, the Bangladesh Securities and Exchange Commission (BSEC), has given seven institutions until 30 April 2027 to resolve financial and legal shortfalls and comply with the relevant rules. At the same time, it has decided that four institutions may continue their business operations.
The decisions were taken at the commission's 1,035th emergency meeting, chaired by BSEC chairman Masud Khan. They followed a review of the financial capacity and regulatory compliance of market intermediary institutions.
The four institutions allowed to continue operating have adequate net assets and are in a satisfactory position on several assessment indicators, the BSEC said.
Among those allowed to keep operating are two stock brokers — Premier Leasing Securities Broking Limited and Aviva Equity Management Limited. The other two are merchant bankers — PLFSL Investments Limited and Prime Finance Capital Management Limited.
In the case of the seven other institutions, shortfalls were found in net assets and in compliance with securities laws and regulations. The deadline has been set for them to remedy those shortfalls.
Four of the seven given time are stock brokers — Premier Leasing Securities Limited, International Leasing Securities Limited, Fareast Stocks and Bonds Limited and PFI Securities Limited.
The list also includes two merchant bankers — IL Capital Limited and GSP Investment Limited — and one asset management company, Prime Finance Asset Management Company Limited.
Under the commission's decision, these institutions must resolve their financial shortfalls and ensure compliance with the relevant laws and regulations by 30 April 2027.
The meeting's decisions also noted that FAS Capital Management Limited had earlier been given until 31 December 2026 to resolve its net asset shortfall and complete the necessary compliance.
The question of brokers' and merchant banks' net assets and rule compliance is directly tied to the safety of investors' money in the capital market. The regulator's scrutiny of institutions in deficit is therefore important for the market.
Market participants will be watching what action follows if the institutions given time fail to make up their shortfalls within the deadline.
With this decision, the effort to restore financial discipline among intermediary institutions has moved another step forward. Reviews of the institutions' progress in the coming months will show how effective the deadline proves to be.
