The SEC said the DSE itself admitted the very fact of malpractice through submission of an investigation report where it was clearly mentioned that a brokerage house had taken loan from its clients.

Referring to the investigation report, the SEC yesterday in a letter to the DSE chairman mentioned that Qazi Kamal Securities, a member of DSE, took loan from its clients. According to the report, the total amount is Tk 10.30 lakh which the brokerage house took from its two clients.

So the matter was not presented objectively in the DSE letter to the Commission, SEC said in reply to the July 9 letter of DSE chairman which expressed ignorance about the malpractice of the members.

Earlier the market regulators, based on the findings of investigation report of DSE, asked the bourse to take appropriate measures against Times Securities Ltd, Mansura Securities Ltd, Qazi Kamal Securities and Md Ali Hossain & Co.

The Commission also directed DSE to submit investigation report on Global securities Ltd, which the exchange submitted later.

Besides, it advised the DSE to carry out inspection and investigation into the activities of five members every month.

In the latest letter SEC refuted the claim made by the DSE that SEC had directed the bourse to allow one of its suspended member Mohammadullah and Sabbir Ahmed to resume trade.

"It is not correct," the SEC said adding that the Commission only forwarded the copy of the court's verdict and there was no directive from SEC in this regard.

Earlier, in a separate letter to DSE, the Commission requested the bourse to follow order of the Supreme Court on the matter and reminded that there was no scope to explain or interpret anything about the verdict from the court.

The Commission, again, advised DSE to take effective steps in appointing the chief executive officer for the exchange.

Regarding the malpractice of the brokerage houses, a senior official of SEC said, the Commission wants to give chance to the brokerage houses to repay the loan.

He also said that the exchanges are the first line of defense which should detect and discipline its own members for the betterment of the market. "Such corrective measures by the DSE will contributed more in rebuilding the lost confidence of the investors."