Warning issued to LankaBangla Securities over rules violations

The Bangladesh Securities and Exchange Commission (BSEC) has issued a warning to LankaBangla Securities PLC over alleged violations of securities laws, directing the firm to strictly comply with all regulations in future. The directive was issued earlier this week by BSEC’s Enforcement Department.
According to BSEC sources, a hearing followed a show-cause notice over non-compliance with securities laws and margin rules. The company appeared before the Commission on 4 August 2025, after being served notice on 21 July and submitted explanations with supporting documents.
The Commission expressed dissatisfaction with the explanations, citing a lack of transparency given the extent of the violations, but considered the firm’s partial compliance through document submission.
In the interest of market discipline, BSEC refrained from imposing harsher penalties, instead issuing a warning and instructing the company to exercise greater caution and ensure compliance with margin rules and regulatory directives. It also warned that any future violations would trigger strict enforcement actions.
The regulator clarified that the decision does not absolve the company of legal liabilities to clients or affected parties, nor does it grant legal immunity. Any losses incurred due to the firm’s irregularities remain its responsibility under the law.