Stock Market Victims to Receive Compensation of Up to Tk 5 Lakh
The Bangladesh Securities and Exchange Commission (BSEC) has taken a step to pay each investor up to Tk 5 lakh from the Dhaka Stock Exchange Investor Protection Fund. This will settle the claims of investors who lost money when brokerage houses embezzled it. The commission decided to instruct the concerned parties to verify the affected investors of Banco Securities, Tamha Securities, Crest Securities and Shah Mohammad Sagir and Company. It also decided to pay compensation against their unsettled claims.
The commission took these decisions at a meeting chaired by BSEC Chairman Mr. Masud Khan the day before yesterday. The meeting also gave approval in principle to six more stock brokerage firms to register as brokers for commodity derivatives trading. The commission also decided to keep 12 capital market related associate firms running under nine financial institutions whose licenses Bangladesh Bank is moving to cancel. It also decided to give them time to cover their shortfalls.
Approval to register six brokerage firms
Six stock brokerage firms received approval in principle for registration certificates as commodity derivatives brokers. They are Sohel Securities, Island Securities, NLI Securities, B Rich, PHP Stocks and Securities and UCB Stock Brokerage. The commission took this decision on the firms’ applications and on the recommendation of the Chittagong Stock Exchange. As the next step in granting the certificates, the commission will issue a letter of intent to each firm. People see this decision as the first approval in the registration process the firms need to work as brokers in the commodity derivatives market.
Compensation for investors of four firms
The commission has taken a step to settle the claims of affected investors of four firms from the Dhaka Stock Exchange Investor Protection Fund. The firms are Banco Securities Limited, Tamha Securities Limited, Crest Securities Limited and Shah Mohammad Sagir and Company Limited. Under the decision, the commission will instruct the concerned parties to verify the affected investors of these firms. They will also pay compensation against the claims not yet settled, following the rules of the fund.
Each investor will get up to Tk 5 lakh. But the notice did not say when the compensation will be paid. It also did not say how many investors will get this benefit.
Decision to keep four firms running
Bangladesh Bank is moving to cancel the licenses of nine financial institutions. BSEC reviewed the work of 12 capital market related associate firms under these institutions and made a decision. The commission found that two stock brokerage firms and two merchant banker firms have enough net assets. Their position is also satisfactory on several evaluation measures, so the commission decided to let them keep doing business.
The two stock brokerage firms are Premier Leasing Securities Broking Limited and Aviva Equity Management Limited. The two merchant banker firms are PLFS Investments Limited and Prime Finance Capital Management Limited.
Seven firms get time to cover shortfalls
Seven capital market related firms have shortfalls in net assets and in following other securities laws and rules. The commission gave them time until 30 April 2027 to remove the shortfalls and follow the needed rules. Four of the seven are stock brokerage firms. They are Premier Leasing Securities Limited, International Leasing Securities Limited, Far East Stocks and Bonds Limited and PFI Securities Limited.
The commission also told two merchant banker firms, IL Capital Limited and GSP Investment Limited, to cover their shortfalls and follow the rules in the same time. It gave the same instruction to one asset management firm, Prime Finance Asset Management Company Limited.
One more firm has time until 31 December
The commission had already set a deadline for Fas Capital Management Limited to remove its net asset shortfall and follow the needed rules. It gave the firm time until 31 December 2026.
