BSEC withdraws suspension of the 15 authorised traders
The commission’s department of surveillance found several brokerage firms engaging in the creation of abnormal sell pressure in some large-cap scrips
The Bangladesh Securities and Exchange Commission (BSEC) withdrew the suspension of 15 authorised traders who were earlier suspended because of their aggressive selling practices in the stock market which created panic among investors.
On 18 April, the BSEC suspended those traders after finding share trading anomalies against them.
The commission's department of surveillance found several brokerage firms engaging in the creation of abnormal sell pressure in some large-cap scrips.
The traders had put zero-price bulk orders that dragged down the stocks' price abnormally and that is why the commission ordered nine brokerage firms to suspend 15 of their traders.
Authorised representatives or traders execute buy-sell orders at brokerage firms.
Zero price orders refer to putting sell orders without asking any price intended to sell off at any available price and that in bulk volume is a violation of the codes for authorised representatives.
Of the 15 suspended traders, five worked for ICB Securities Trading, two from Rashid Investment Services and Shyamol Equity Management, while other brokerage firms Parkway Securities, Quayum Securities, Mercantile Bank Securities, TA Khan Securities, JKC Securities, and Kazi Equities each ordered to suspend one of their traders.