ET Report
The capital market regulator has fined the country's twin bourses for trading gaffes, an official said.
The Securities and Exchange Commission slapped Tk 1 lakh in fine on the Dhaka Stock Exchange for discrepancies in index calculation and for opening trade ahead of schedule.
"The Dhaka Stock Exchange has been fined for inconsistency in calculation of index for different issues," SEC executive director Farhad Ahmed told bdnews24.com yesterday.
The country's premier bourse had used different methods for index calculations during debut of issues in the market, he added. Usually, the bourse authorities are supposed to use a single method to calculate the index on the day when a new share's trade starts. The calculation of index is significant as usually on the first day a share price sees a huge hike, which leaves a large impact in the index.
On Feb 25, trading on the Dhaka stocks started about a minute ahead of schedule. After hearings on these two issues, the SEC decided to penalise the bourse, according to the official.
DSE president Shakil Rizvi was unavailable for comments. However, the senior vice-president Nasiruddin Ahmed told bdnews24.com that he was not aware of the matter.
Tthe Chittagong Stock Exchange has been also fined a similar amount for starting trades earlier than designated hours.
The SEC official could only confirm the matter but failed to provide details as he was not at his office when contacted by bdnews24.com.