BSEC to compensate defrauded investors with Tk 5 lakh each

Investors whose money was embezzled by four brokerage firms will receive compensation of up to Tk 5 lakh each from the Dhaka Stock Exchange’s (DSE) Investor Protection Fund, as the securities regulator moves to settle verified claims that have remained unresolved.

The Bangladesh Securities and Exchange Commission (BSEC) decided on Monday to initiate the compensation process for affected investors of Banco Securities, Tamha Securities, Crest Securities and Shah Mohammad Sagir & Company, offering relief to investors whose funds were misappropriated by the firms.

The decision was taken at a commission meeting chaired by BSEC Chairman Masud Khan on October 19. The commission will instruct the relevant authorities to arrange payments against verified, unsettled claims in accordance with the rules governing the protection fund.

However, the commission did not specify when payments would begin or how many investors would qualify for compensation.

In a separate decision, the commission granted in-principle approval to six brokerage firms to register as brokers in the commodity derivatives market, marking another step towards diversifying Bangladesh’s capital market.

The six firms are Sohel Securities, Island Securities, NLI Securities, B Rich, PHP Stocks and Securities, and UCB Stock Brokerage. The approval followed their applications and recommendations from the Chittagong Stock Exchange (CSE). Letters of intent will be issued as the next step in the registration process.

The commission also reviewed the status of 12 capital market-related entities affiliated with nine financial institutions facing licence cancellation proceedings by Bangladesh Bank, allowing them to continue operating while addressing regulatory deficiencies.

Of these, two stock brokerage firms and two merchant banks were found to have adequate net assets and satisfactory performance against other assessment criteria. They have been allowed to continue their operations.

The brokerage firms are Premier Leasing Securities Broking Limited and Aviva Equity Management Limited, while the merchant banks are PLFS Investments Limited and Prime Finance Capital Management Limited.

Seven other entities have been given until April 30, 2027, to address net asset shortfalls and ensure compliance with securities laws and regulations.

The four brokerage firms are Premier Leasing Securities Limited, International Leasing Securities Limited, Fareast Stocks and Bonds Limited, and PFI Securities Limited. The two merchant banks are IL Capital Limited and GSP Investments Limited, while the remaining entity is Prime Finance Asset Management Company Limited.

The BSEC has instructed these firms to rectify their deficiencies within the stipulated deadline.

Separately, FAS Capital Management Limited has been given until December 31, 2026, to resolve its net asset shortfall and comply with the relevant regulatory requirements, following an earlier deadline set by the commission.