Dhaka:Chairman of the Bangladesh Securities and Exchange Commission (BSEC), Masud Khan, has called for the implementation of a unified and secure back-office software across all brokerage houses to curb fund embezzlement and financial irregularities in the capital market.
According to United News of Bangladesh, Khan emphasized the necessity for authorities to have real-time access to brokerage houses' bank accounts and Consolidated Customers' Accounts (CCA) in today's digital age. He made these remarks at the Investor Protection Fund (IPF) distribution ceremony hosted by the Dhaka Stock Exchange (DSE) at its headquarters in Nikunja.
Khan stated that a single, highly protected back-office software would facilitate real-time data access, allowing for daily reconciliations and quick identification of fund shortfalls or irregularities, thus reducing the need for direct regulatory oversight. He also highlighted the importance of improving Order Management Systems (OMS).
The BSEC chief disclosed that recent market irregularities affected 17,967 investors, involving financial opacities totaling Tk 492 crore across five securities houses. He described the issue as deeply concerning but noted that the fund distribution marks the beginning of its resolution through collaboration between the DSE, BSEC, and the Investors Forum.
Regarding the refund process via the IPF, Khan announced that investors with claims under Tk 5 lakh would receive full reimbursement in the first phase, covering approximately 96 percent of all affected investors. He assured that those with claims exceeding Tk 5 lakh would be addressed in subsequent phases to restore confidence in the stock market.
The event also featured speeches from DSE Chairman Mominul Islam, Managing Director Nuzhat Anwar, Board members, and victim investors.