BSEC to assist investors defrauded by Moshihor Securities in recovering embezzled funds
The Bangladesh Securities and Exchange Commission (BSEC) has assured investors defrauded by Moshihor Securities that it will help them recover funds embezzled by the brokerage firm.
The firm reportedly used multiple software schemes to embezzle Tk161 crore from investors, leaving them financially devastated.
Today, 35 affected investors met with the BSEC chairman to press for the recovery of their money. During the meeting, five of them described their personal financial hardships and losses. The chairman assured the delegation of BSEC's full support in reclaiming their funds.
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BSEC spokesperson Abul Kalam stated that the investors had come to present their demands, and the chairman listened to their concerns. He said BSEC would take all legal measures to help the investors recover their funds and would stand by them throughout the process.
He further noted that the matter has already been referred to the Anti-Corruption Commission, which is currently investigating the case. Travel restrictions have been imposed on Moshihor Securities' directors, while preparations are being made to compensate investors through the Investor Protection Fund, he added.
According to the regulator, the firm misappropriated client funds invested in the capital market over several years by using multiple servers and databases to evade regulatory oversight.
In August 2024, the Dhaka Stock Exchange (DSE) identified a Tk68.58 crore shortfall in the company's consolidated customer account, down from Tk75 crore in May of that year.
Investors also suffered additional losses from not receiving dividends, bonus shares, and rights shares for 2023 and 2024. Many relied on this income to support their families, and are now completely devastated, according to investors.
In response to the reports of widespread malpractice, BSEC formed a five-member probe committee, which confirmed that Moshihor Securities had misused a total of Tk161 crore, comprising Tk68.58 crore of investors' cash and Tk92.35 crore of investors' shares.
As a result of the deficit, the commission has suspended all facilities of the brokerage firm.
