Biplob Holdings fined for investment in non-listed securities

The securities regulator has imposed a Tk5 lakh fine on Biplob Holdings Limited, a Dhaka Stock Exchange TREC holder, for investing in non-listed securities.

In the last month, the Bangladesh Securities and Exchange Commission (BSEC) slapped the fine after a long hearing and issued a letter in this regard.

The commission observed that the company is operating a shipping business and invested in Alpha Islami Life Insurance Limited violating the Securities and Exchange Commission Rules, 2020.

Currently, the brokerage firm is holding a total of 14,40,000 shares of Alpha Islami Life Insurance Limited. Its expected gain would be more than Tk13.31 crore.

The brokerage firm also invested in its sister concern Biplob Properties Ltd violating the same rule of the commission.

Kafil Uddin Bhuyan, managing director of Biplob Holdings Limited, said, "We have already applied to the BSEC for a review of this matter."

He said the loan was provided to Biplob Properties Ltd amounting to Tk4.32 lakh only which was unintentional and has already been refunded to Biplob Holdings Limited by the recipient.

Now, there is no such loan available in the book of accounts of Biplob Holdings Limited, he added.

According to hearing statements, Biplob Holdings took registration in January 2020. The shipping business has been in operation since its inception. The brokerage house's activities started in April 2022.

By this time, the company has already taken steps to separate the shipping business from the brokerage house.

Besides, investment in non-listed Securities Alpha Islami Life Insurance was also made before the issuing of TREC and Stock Broker and stock Dealer registration in favour of the company.

Alpha Islami Life Insurance has decided to raise funds from the capital market through an Initial Public Offering as early as possible.

The company hopes it will be a listed company after the IPO, which is now under processing.