DHAKA: The Securities and Exchange Commission Sunday suspended stock trading by a brokerage house on Dhaka Stock Exchange (DSE) for opening its branch without prior permission.

The suspension would be effective for a month from Monday for Arafat Securities who opened branch without permission of the SEC and took money from the investors, a meeting of the watchdog body decided Sunday.

“A brokerage house cannot open its branch without prior permission of the SEC. But Arafat Securities opened a branch in Naogaon and started trading that prompted the SEC to take the decision,” SEC’s executive director and spokesman Farhad Ahmed told banglanews24.com.bd.

However, a senior official of the brokerage house, Babar Ahmed, told banglanews24.com.bd that they did not open any new branch in Naogaon. “We entertained on-the-phone trading from Naogaon,” he said.

The SEC’s decision halted trading of over 33,000 clients having BO (beneficiary owners) account with the suspected delinquent dealer, Arafat Securities.  

Although the investors of the brokerage house will face temporary trouble, the SEC’s decision has been taken for the greater good, a SEC top official said. “If they wish, the traders can trade through link account with other brokerages,” the official said.

BDST 1930 HRS, AUGUST 1 , 2010