Sonali Securities loses trading licence over rule violations

The Dhaka Stock Exchange (DSE) has cancelled the trading rights of Sonali Securities Limited after finding violations of regulatory requirements that mandate keeping net worth at least 75% of paid-up capital.

With the DSE decision, the firm is now barred from carrying out any further transactions on the bourse.

The decision to revoke the company's Trading Right Entitlement Certificate No 261 has recently come into effect, according to a disclosure issued by the exchange today (5 May). The punitive action was taken under the Trading Right Entitlement Certificate Rules, 2020, framed by the Bangladesh Securities and Exchange Commission.

The DSE said the decision followed due process, including issuing notices, allowing the firm to submit its defence, and conducting hearings where necessary before reaching a final determination.

A stock exchange official, speaking on condition of anonymity, said the action stemmed from a shortfall in the company's net capital identified in its audited financial statements. He added that all procedures were carried out in accordance with the law.

Under the rules, brokerage firms must maintain a minimum level of financial strength to retain their trading rights. Their continuously audited net worth must be at least 75% of paid-up capital, ensuring that net assets do not fall below the prescribed threshold.

The regulations also set minimum paid-up capital requirements at Tk5 crore for brokerage firms, rising to Tk8 crore for joint ventures between local and foreign shareholders and Tk10 crore for fully foreign-owned entities. Market participants say these thresholds are designed to ensure financial stability and protect investor funds.

When contacted by TBS, Sonali Securities Managing Director Brigadier General (Retd) Sharif Ahsan said the company had not yet received any official letter regarding the cancellation and declined to comment on the specific legal provisions allegedly breached.

Regulations require the DSE to provide the concerned party an opportunity to defend itself before taking such action. This includes issuing a written notice at least 10 days in advance, allowing submission of a response, and granting a personal hearing if necessary, with the final decision communicated in writing.

The cancellation has created uncertainty for clients of Sonali Securities. The DSE has advised investors to immediately verify their account balances, including both cash and shares, and to settle any outstanding transactions without delay.

The bourse also instructed clients to submit any claims, complaints, or dues against the company in writing, supported by relevant documents. Submissions can be made to the chief regulatory officer at DSE Tower in Nikunja or through the online complaints module of Central Depository Bangladesh Limited.

The deadline for filing claims or complaints has been set for 21 May 2026.