Biplob Holdings Limited, a TREC holder of the Dhaka Stock Exchange, has been fined Tk5 lakh by the Bangladesh Securities and Exchange Commission (BSEC) for violating rules by investing in non-listed securities. The commission found that the company, primarily engaged in shipping business, invested in Alpha Islami Life Insurance Limited against the Securities and Exchange Commission Rules, 2020. Currently holding 14,40,000 shares of Alpha Islami Life Insurance Limited, the brokerage firm faces an expected gain of over Tk13.31 crore. Biplob Holdings also invested in Biplob Properties Ltd, a sister concern, breaching the same commission rule.
Kafil Uddin Bhuyan, the managing director of Biplob Holdings Limited, stated that they have requested a review of the matter from the BSEC. He clarified that the unintentional loan provided to Biplob Properties Ltd, amounting to Tk4.32 lakh, has been refunded and is no longer in Biplob Holdings’ accounts.
According to hearing statements, Biplob Holdings registered in January 2020 and initiated shipping business operations since then. The brokerage activities commenced in April 2022, prompting the company to separate the shipping business from the brokerage house. Notably, the investment in non-listed securities like Alpha Islami Life Insurance was made prior to the issuance of TREC and Stock Broker and Stock Dealer registration for the company.