United News of Bangladesh

Dhaka Stock Exchange (DSE) will refund up to Tk 5 lakh in full to 17,332 investors who suffered losses from irregularities and embezzlement by brokerage houses, paying out of its Investors Protection Fund (IPF), DSE Chairman Mominul Islam said Monday. Speaking at the DSE's inauguration ceremony for IPF disbursement, Mominul said investing in the capital market can bring both profit and loss, and share price fluctuations are natural. "But when investors suffer because of irregularities by a market intermediary, it seriously damages their confidence in the market. Such incidents are not acceptable in any way," he said. Mominul said several brokerage houses failed to discharge their responsibilities in the past. "Five of them diverted investors' money or shares into their own accounts and later failed to return them.” According to the DSE, 17,967 investors are currently affected. Of them, 17,332 will get their full money, up to Tk 5 lakh each, from the IPF in this phase. For investors who will not receive their full money at this stage, he said, initiatives will be taken to return it quickly. "The DSE and other market stakeholders will work on this through legal means." Expressing regret to the affected investors, the DSE chairman said they had invested their hard-earned money in the market with great hope. He apologised for the mental and financial hardship they endured because of the irregularities. To prevent such incidents in the future, he urged all market stakeholders, including the Bangladesh Securities and Exchange Commission (BSEC), the two stock exchanges, the Central Depository Bangladesh Limited (CDBL) and brokerage houses, to work together. He expressed hope that collective efforts would fully restore investor confidence. He said verifying the information of 17,967 investors and determining their investment records and final balances was a difficult task, which DSE management completed. He expressed hope that the refund process would also be carried out properly. Regarding the fund's sources, Mominul said the main sources are brokerage houses' trade commissions and 25 percent of the interest earned on Customer Consolidated Accounts (CCA). "This DSE initiative would not have been possible without the contribution of brokerage houses." Expressing hope that the positive trend in the country's capital market would strengthen further, he said building a strong and transparent market is a shared goal. All stakeholders must work together to develop the capital market as a key pillar of the economy, he added.