SEC cancels 62,674 BO accounts
BDNEWS, Dhaka
The Securities and Exchange Commission (SEC) has cancelled 62,674 beneficiary owners (BO) accounts, which were found fake, official sources said yesterday. The accounts include 26,004 fake BO accounts linked to the Premier Bank IPO scam, the sources added. "We have cancelled the accounts as they were opened without proper documents. Besides, many accounts were not registered with the central depository system," Mansur Alam, executive director of the SEC, said. Currently, there are some 420,000 BO accounts registered through various depository participants (DPs), SEC sources said. There are 179 authorised DPs, mostly the brokerage houses, but only 158 of them are functioning as DPs. The SEC took initiative to identify and cancel the fake or irregular BO accounts following the Premier Bank IPO scam. The Commission also instructed the DPs to scrutinise BO accounts to find out the irregular and fake ones. It also directed the DPs to submit the list of all valid BO accounts to the SEC, Central Depository Bangladesh Ltd (CDBL) and the Dhaka and Chittagong stock exchanges by June 30. The system of opening BO accounts was introduced in January 24, 2004 to facilitate electronic settlement of share transaction through central depository system.
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