The securities regulator on Tuesday cancelled the stock-broker and stock dealer registration certificate of Alliance Securities and Management Limited on charges of irregularities.
The Bangladesh Securities and Exchange Commission (BSEC) has asked all investors and trading right entitlement certificate (Trec) holder companies to settle their valid claims, if any, against the aforesaid company.
On 21 May, 2019, the commission suspended the licence of the brokerage house.
The regulator found many irregularities in an inquiry at that time. The company had provided business facilities to its directors and their family members.
They used to withdraw money from their individual beneficiary owners (BO) accounts and adjust their loans even when they did not have an adequate balance – in violation of the rules – the inquiry also found.
The company has withdrawn Tk12.97 crore from the investors' consolidated customers' account illegally and made a fixed deposit scheme, violating the rules.
It did not cooperate with investigators at the time of the enquiry, the BSEC alleged.
Pankaj Roy, chairman of Alliance Securities and Management Limited, told The Business Standard that the regulator has taken a good decision to cancel the licence of the company in the interest of investors.
"Three other directors who hold a 75% stake in the company committed these irregularities and defrauded investors," he added.
"They had received money from investors but did not submit it into the consolidated customers' account and they used the funds of the consolidated customers' account to buy shares for investors. This way, they withdrew money from that account and defrauded the investors," he continued.
Pankaj Roy claimed that he had informed the BSEC in detail about the irregularities and applied to the High Court to withdraw his 25% stake from the company.
"The High Court ruled in favour of me but they [ the other directors] did not respond to the order," he said.
"I do not know anything about their motives. But I do not want to do business with them. I want to get back my stake from the company. But they want to defraud me and investors."