Ninety-seven percent of the investors harmed by five brokerage houses that embezzled money will receive compensation. About 72 crore taka will be paid in compensation to 17,332 of the 17,925 investors at the five brokerage houses. The compensation money will be returned from September 28 this month, and the process is to be completed within the next two months.
The return of compensation money to investors was announced at a press conference organised by the Dhaka Stock Exchange (DSE) on Tuesday. DSE chairman Mominul Islam, DSE managing director Nuzhat Anwar and Investor Protection Fund chair Nasrin Begum were present at the press conference, held in the multipurpose hall of the DSE Tower at Nikunja in the capital.
The Mashiur, Banco, Tamha, Crest and Shah Mohammad Sagir securities houses sold investors’ shares and took the money. These events occurred in 2022 and earlier. The five brokerage houses are alleged to have embezzled about 550 crore taka from ordinary investors.
There are also allegations of embezzling investors’ money against Salta Securities. An investigation by the capital market regulator, the BSEC, is continuing on that matter. The DSE gave no information on how much investors’ money that house embezzled.
At the press conference, the Investor Protection Fund chair said that under sub-rule (7) of rule 16 of the Dhaka Stock Exchange (Investor Protection Fund) Rules 2014, there is provision to pay investors compensation within a set period. In the light of that provision, a maximum of five lakh taka is to be paid in compensation to each client from the fund. Compensation is being paid to investors accordingly. Through this, 97 percent of the affected investors are receiving their money as compensation.