An alleged share-transfer scheme involving 40,392 shares of Himadri Limited has raised fresh questions about brokerage oversight and investor protection after a shareholder claimed her inherited holdings were transferred from her account, sold within weeks and the proceeds diverted without her authorization.
The allegations involve transactions linked to Green Delta Securities and UCB Stock Brokerage and have prompted legal proceedings in which the High Court Division has issued a Rule Nisi, directing the respondents to explain why the actions challenged in the petition should not be declared without lawful authority. No court has yet made any final finding on the allegations.
The controversy centers on 40,392 shares of Himadri Limited which, according to a petition filed by shareholder Tanzia Ahmed, disappeared from her control through a series of transactions that allegedly bypassed multiple layers of investor protection safeguards.
According to the petition, Ahmed inherited the 40,392 shares from her late father. The shares were reportedly held in a Beneficiary Owner (BO) account maintained through Green Delta Securities and appeared in account records for years without issue.
The first sign of trouble emerged when the holding allegedly showed an unexplained reduction from 40,392 shares to 38,058 shares. The petition describes the discrepancy as the first indication of a breakdown in what was expected to be a secure custodial chain.
The core legal dispute revolves around allegations that a second BO account was opened in Ahmed's name through UCB Stock Brokerage without her knowledge, consent or authorization.
According to the petition, the account was created while she was outside Bangladesh.
The petitioner alleges that account-opening documents contained inconsistencies involving identification records, contact details and introducer information. The petition further claims that standard Know Your Customer (KYC) requirements and verification procedures either failed to detect or prevent the alleged irregularities.
According to the petition, the disputed account became the vehicle through which the shares were moved out of their original custody.
The complaint alleges that transfer instructions bearing a signature disputed by the shareholder were used to transfer the Himadri shares from the Green Delta Securities account to the newly opened account at UCB Stock Brokerage.
The petition further claims that several attempts were allegedly made before the transfer was successfully executed.
Once the transfer was completed, the entire portfolio of 40,392 shares was allegedly moved into the secondary account.
According to the petition, the shares were then rapidly liquidated. Nearly the entire holding was reportedly sold within about two months, generating proceeds of approximately Tk 33 lakh.
The petitioner argues that the liquidation took place before a significant rise in the market value of Himadri Limited shares. While the petition highlights the timing of the transactions and subsequent price appreciation, no conclusion has been reached regarding the reasons behind the market movement.
The complaint further alleges that Ahmed was not physically present in Bangladesh during the period when the disputed account-opening activities, transfer instructions and sales transactions took place. Travel-related information and supporting documents have been cited in the petition to support that claim.
According to the petitioner, her absence raises questions about how the disputed transactions could have been initiated or authorized by the registered shareholder.
Another major allegation concerns the destination of the sale proceeds. The petition claims that funds generated from the sale of the Himadri shares were transferred to a bank account not linked to the original shareholder.
The complaint characterizes this as the final stage of a chain that allegedly began with identity misuse, continued through disputed account creation and share transfers, and ended with the diversion of funds generated from the liquidation of the shares.
Taken together, the allegations describe what market observers view as a suspected seven-step sequence an unexplained reduction in shareholdings, creation of a parallel BO account, identity-related discrepancies, disputed transfer instructions, migration of the entire portfolio, rapid liquidation of shares and the alleged diversion of proceeds.
The case has attracted attention in capital market circles because it raises questions about investor protection mechanisms, brokerage-level verification systems and safeguards for shareholders, particularly those living abroad or remaining absent from the country for extended periods.
The proceedings are expected to focus on account-opening records, KYC compliance, transfer documentation, settlement records, banking transactions and audit trails connected to the disputed shares.
Market experts say that regardless of the outcome, the case highlights concerns over identity verification, account authentication and custodial oversight within the capital market system.
When contacted, a senior official of the Dhaka Stock Exchange (DSE) said, "We know about this and our own system is working on the issue."
"We reported this and our enforcement action is there to see the matter," he added.
A senior official of the Bangladesh Securities and Exchange Commission (BSEC) declined to comment on the matter.
The allegations remain contested, and the matter is awaiting final judicial determination.
