During the period from July 2000 to June 2001, 23 (twenty three) brokerage houses have been inspected based on some specific observation of surveillance officers related to daily share trading. Out of these 23 brokerage houses some have been inspected several times.
Constant real time monitoring of the trading of Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd. through non-trading version of Work Stations is continuing unabated. The surveillance officers time to time inform the top management about the market condition who if feel necessary, talks with the management of the respective exchanges.
At the end of the trading, a report pointing out highlights or abnormal activity found during the trading is prepared and submitted to the Chairman & others.
Analysis of trading data:
Post trading analysis is still continuing at surveillance department and in this connection relevant data and trading information are regularly collected from the exchanges based on which analysis and calculation are done sometimes manually and sometimes with the help of software. The purpose of this post trading analysis is to find out the unusual behavior of the trading. If any abnormal trend or volatility in terms of turnover and price movement is noticed then primary inspection is conducted in order to ascertain the reason behind such volatility and when anything suspected wrong, the matter is referred to management for further action.
Enquiry Committee constituted under Notification No. SEC/SMED/2000-934/716 dated 23RD May 2000 for enquiry into the matter of abnormally high volume of trading of the shares of Raspit Inc. (BD.) Ltd. by a brokerage house, have submitted their enquiry report on 01.10.2000.
Enquiry Committee constituted under Notification No. SEC/SMED/2000-949/1906 dated 11th October 2000 for enquiry into the matter of abnormally high volume of trading of some Scripps by a handful brokers/dealers, have submitted their enquiry report on 12.12.2000.
Tripartite Surveillance Meeting:
First Tripartite Surveillance Meeting was held on 08.08.2000 at SEC Board Room. Mr. Farhad Ahmed, Director, SEC presided over the meeting and was attended by Mr. Nironjan Kumar Roy, Deputy Director, Mr. Md. Atiquzzaman, Head of Surveillance Department, Chittagong Stock Exchange Ltd. and Mr. Md. Samiul Islam, Officer, Dhaka Stock Exchange Ltd.
The meeting had taken some decisions regarding the surveillance activities and monitoring the daily trading. The committee has also agreed to hold such meeting once in a one and half month. Second Tripartite Surveillance Meeting was held on 08.11.2000 at SEC.
The meeting has taken the following decisions regarding the surveillance activities and monitoring the daily trading.
The surveillance department of the exchanges will retain the copy of the daily report on the trading being prepared as per earlier decision for future reference.
Henceforth necessary announcement made by the exchanges will be retained by the Surveillance Department.
The exchange will expedite the process of installing necessary software in their Surveillance Department.
Surveillance officials will conduct regular as well as cause inspection and even spot inspection if necessary, and submit the report on the basis of their inspection to their higher authority.
Special watch on the trading of Z group shares:
surveillance officials closely monitor the trading of Z group shares particularly
price movement of these shares and if any exorbitant price change in the
trading of Z group shares is noticed, the matter is taken up with the management
and if necessary the concerned brokerage houses are asked to furnish the
relevant papers for clarification. During this period four brokerage houses
were asked to furnish relevant papers/information in this connection.