Dhaka:The Dhaka Stock Exchange (DSE) has announced plans to refund up to Tk 5 lakh to each of 17,332 investors who suffered losses due to irregularities and embezzlement by brokerage houses. These refunds will be issued from the DSE's Investors Protection Fund (IPF), as stated by DSE Chairman Mominul Islam during the inauguration ceremony for the IPF disbursement.
According to United News of Bangladesh, Mominul emphasized the impact of market intermediary irregularities on investor confidence, describing such incidents as unacceptable. He outlined that several brokerage houses had failed in their responsibilities, with five diverting investor money or shares into their accounts and subsequently failing to return them.
The DSE has identified a total of 17,967 affected investors, of whom 17,332 will receive full reimbursement in this phase. For those who will not receive a full refund at this stage, efforts will be made to expedite the return of their money through legal means, involving collaboration with other market stakeholders.
Mominul expressed regret for the distress caused to investors who put their hard-earned money into the market. He apologized for the hardships endured due to brokerage irregularities and urged all market participants, including the Bangladesh Securities and Exchange Commission (BSEC), stock exchanges, Central Depository Bangladesh Limited (CDBL), and brokerage houses, to work together to prevent future incidents and restore investor confidence.
The task of verifying the details of 17,967 investors and determining their final balances was challenging but has been completed by the DSE management. Mominul expressed confidence that the refund process would be executed properly.
Discussing the fund's origins, he noted that it is primarily sourced from brokerage houses' trade commissions and 25 percent of interest earned on Customer Consolidated Accounts (CCA). He acknowledged the role of brokerage houses in making this initiative possible.
Mominul concluded with optimism about the positive trends in the country's capital market, emphasizing the importance of building a strong and transparent market as a key economic pillar, with collaboration among all stakeholders.