BSEC detects 148 short sales execution

Dhaka,  Fri,  22 September 2017
Published : 05 Aug 2017, 21:57:19
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BSEC detects 148 short sales execution

FE Report


The instant market watch surveillance software of the securities regulator has detected some 148 short sales executed on both the bourses.

Following the alerts of surveillance software, the Bangladesh Securities and Exchange Commission (BSEC) has asked the stock exchanges to probe into the short sales executed in June and July last.

The BSEC software has detected 108 short sales executed on Dhaka Stock Exchange (DSE), while 40 short sales were found on Chittagong Stock Exchange (CSE).

The regulator delivered the instruction of inquiry through a letter sent to chief regulatory officers of both the stock exchanges.

Mohammad Saifur Rahman, a BSEC executive director said the securities regulator asked the stock exchanges to conduct investigation over any suspicious alert delivered by surveillance software on regulator basis.

"The instruction of conducting investigation and submission of reports on short sales came as part of our regular job," Rahman said.

He said regulator takes measures as per rules if something wrong is found in share transactions executed on the stock exchanges.

The securities regulator also asked the exchanges to report on how those short sales were settled.

As per BSEC letter sent to the stock exchanges, inquiry report on alleged short sales will have to be submitted to the regulator within 20 working days.

Asked, CSE managing director M Shaifur Rahman Mazumdar said their regulatory affairs department will work as the regulatory instruction.

"The concerned department will submit report on short sales to the BSEC if something abnormal is found," Mazumdar said.  

A short sale is a transaction in which an investor sells borrowed securities in anticipation of a price decline and is required to return an equal number of shares at some point in the future.

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