The Dhaka Stock Exchange (DSE) is taking steps to address financial fraud affecting investors by disbursing compensation through the DSE Investors’ Protection Fund. The fund, created in 2014, is being utilized for the first time, as 8,561 customers have filed claims amounting to over Tk200 crore against four brokerage firms. These brokerage houses, namely Crest Securities, Banco Securities, Tamha Securities, and Shah Mohammad Sagir & Company Limited, are accused of unauthorized selling of clients’ shares and embezzlement from consolidated customers’ accounts.
DSE Managing Director ATM Tariquzzaman confirmed that Tk25 crore will be disbursed initially on a pro-rata basis, with priority given to clients of the most culpable brokerage firm. The disbursement aims to provide relief to affected investors, and account payee cheques will be issued, with the first phase of payments expected to be completed through banking channels by the end of the week.
Tamha Securities is alleged to have embezzled Tk139.67 crore by using unauthorized software and providing false information to clients. Banco Securities faced suspension in June 2021 due to a Tk60 crore embezzlement, while Crest Securities closed operations with a deficit of Tk65.30 crore. Shah Mohammad Sagir & Company, accused of embezzling Tk13.74 crore, was suspended for trade settlement failures.
In June 2022, the DSE settled some claims through the Bangladesh Electronic Funds Transfer Network (BEFTN), disbursing Tk4.76 crore to 431 investors. The recent directive from the Bangladesh Securities and Exchange Commission urged the DSE to settle the claims from the Investors’ Protection Fund. The disbursement process will involve thorough verification of data to ensure a fair distribution of funds to the affected investors. The DSE remains committed to supporting measures that prioritize the well-being of the general public and maintaining market stability.
