DSE asked to explain non-payment of claims from Investor Protection Fund | The Business Standard
Skip to main content
  • Latest
  • Epaper
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Saturday
June 21, 2025

Sign In
Subscribe
  • Latest
  • Epaper
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
SATURDAY, JUNE 21, 2025
DSE asked to explain non-payment of claims from Investor Protection Fund

Stocks

Salah Uddin Mahmud
31 August, 2023, 10:40 pm
Last modified: 02 September, 2023, 05:22 pm

Related News

  • DSE serves query to Lovello over unusual share price hike
  • Stocks surge despite turnover dipping to year-low
  • DSE Market Cap drops by Tk2,000cr, indices plunge amid investor panic
  • Stocks fall for fourth straight session as DSEX sheds 82 points
  • Stocks rebound after two-day slump 

DSE asked to explain non-payment of claims from Investor Protection Fund

The fund has only Tk19 crore and the DSE is yet to pay the claims of investors from the fund

Salah Uddin Mahmud
31 August, 2023, 10:40 pm
Last modified: 02 September, 2023, 05:22 pm
Infographics: TBS
Infographics: TBS

The securities regulator has sought explanations from the Dhaka Stock Exchange (DSE) about why the bourse has still not paid the claims of the defrauded investors from the DSE Investor Protection Fund. 

On 28 August, the Bangladesh Securities and Exchange Commission (BSEC) asked the Dhaka bourse to submit detailed documents about the protection fund within ten working days. 

Earlier, four brokerage firms — Tamha Securities, Crest Securities, Banco Securities, and Shah Mohammad Sagir & Company — embezzled investors' money from their beneficiary owner (BO) accounts. 

Therefore, the BSEC decided to settle the claims of the defrauded customers of these brokerage houses with the money available in the protection fund. 

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

The fund has only Tk19 crore and the DSE is yet to pay the claims of investors from the fund, said DSE acting Managing Director M Saifur Rahman Majumdar. 

This June, the BSEC formed a five-member inquiry committee to look into the DSE Investor Protection Fund. 

The committee was given 60 days to check whether the money that was supposed to have been in the protection fund was deposited and safeguarded there. 

DSE's acting MD told The Business Standard, "As the fund is under review, the Dhaka bourse will not settle any claim until the investigation is over."

After the completion of investigation, the stock exchange will act as per the regulatory decision, he added. 

BSEC Commissioner Dr Shaikh Shamsuddin Ahmed said, "We sought documents from the DSE in this regard. If the commission finds any anomalies about the fund, then it will take initiatives." 

Professor Abu Ahmed, a capital market expert, earlier said that the existing system in brokerage firms should be changed because in the current one, investors' money is not secured.

"Investors' money should be linked with their bank accounts instead of that of the brokerage firms," he added.

The DSE Investor Protection Fund came into being through a gazette notification in August 2014. The fund was created to protect the interests of investors in case of any default by brokerage firms.

Embezzlement by four brokerage firms

According to the DSE, Tamha Securities embezzled Tk139.67 crore of clients' money by illegally using added software and providing fake information on their investment status. Of this, Tk92.57 crore was cash and Tk47 crore securities. 

In June 2021, the DSE suspended the trading of Banco Securities for the embezzlement of Tk60 crore, according to its primary findings.

Crest Securities embezzled Tk65.30 crore from the firm's consolidated customer account. Of this, Tk44.90 crore was in cash, and Tk20.40 crore securities.

Besides, the country's premier bourse suspended the transactions of Shah Mohammad Sagir & Company Ltd because of the firm's failure in trade settlements. After an inspection, the DSE found that the brokerage firm embezzled Tk13.74 crore.

Top News

Investor Protection Fund / DSE

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Representational image of accident. Photo: Collected
    9 killed, 20 injured in two road accidents in Mymensingh
  • Monsoon in Bandarban’s hilly hiking trails means endless adventure — something hundreds of Bangladeshi hikers eagerly await each year. But the risks are sometimes not worth the reward. Photo: Collected
    Tragedy on the trail: The deadly cost of unregulated adventure tourism in Bangladesh’s hills
  • Smoke rises following an Israeli attack on the IRIB building, the country's state broadcaster, in Tehran, Iran, June 16, 2025. File Photo: Majid Asgaripour/WANA (West Asia News Agency) via REUTERS
    Iran says no nuclear talks under Israeli fire, Trump considers options

MOST VIEWED

  • BAT Bangladesh to shut Mohakhali factory, relocate HQ after lease rejection
    BAT Bangladesh to shut Mohakhali factory, relocate HQ after lease rejection
  • Collage of the two Shahjalal University of Science and Technology (SUST) students held over raping classmate after rendering her unconscious and filming videos. Photos: Collected
    2 SUST students held for allegedly rendering female classmate unconscious, raping her, filming nude videos
  • BUET Professor Md Ehsan stands beside his newly designed autorickshaw—just 3.2 metres long and 1.5 metres wide—built for two passengers to ensure greater stability and prevent tipping. With a safety-focused top speed of 30 km/h, the vehicle can be produced at an estimated cost of Tk1.5 lakh. Photo: Junayet Rashel
    Buet’s smart fix for Dhaka's autorickshaws
  • Illustration: Ashrafun Naher Ananna/TBS Creative
    From 18m to 590m Swiss francs: Bangladeshi deposits fly high in Swiss banks
  • Mashrur Arefin appointed Chairman of the Association of Bankers Bangladesh
    Mashrur Arefin appointed Chairman of the Association of Bankers Bangladesh
  • Students attend their graduation ceremony. REUTERS/Brian Snyder/File Photo
    US resumes student visas but orders enhanced social media vetting

Related News

  • DSE serves query to Lovello over unusual share price hike
  • Stocks surge despite turnover dipping to year-low
  • DSE Market Cap drops by Tk2,000cr, indices plunge amid investor panic
  • Stocks fall for fourth straight session as DSEX sheds 82 points
  • Stocks rebound after two-day slump 

Features

Monsoon in Bandarban’s hilly hiking trails means endless adventure — something hundreds of Bangladeshi hikers eagerly await each year. But the risks are sometimes not worth the reward. Photo: Collected

Tragedy on the trail: The deadly cost of unregulated adventure tourism in Bangladesh’s hills

4h | Panorama
BUET Professor Md Ehsan stands beside his newly designed autorickshaw—just 3.2 metres long and 1.5 metres wide—built for two passengers to ensure greater stability and prevent tipping. With a safety-focused top speed of 30 km/h, the vehicle can be produced at an estimated cost of Tk1.5 lakh. Photo: Junayet Rashel

Buet’s smart fix for Dhaka's autorickshaws

14h | Features
Evacuation of Bangladeshis: Where do they go next from conflict-ridden Iran?

Evacuation of Bangladeshis: Where do they go next from conflict-ridden Iran?

2d | Panorama
The Kallyanpur Canal is burdened with more than 600,000 kilograms of waste every month. Photo: Courtesy

Kallyanpur canal project shows how to combat plastic pollution in Dhaka

3d | Panorama

More Videos from TBS

News of The Day, 20 JUNE 2025

News of The Day, 20 JUNE 2025

4h | TBS News of the day
Israel strikes Iranian missile launch site

Israel strikes Iranian missile launch site

5h | TBS World
Tarique Rahman's Potential Homecoming: Preparations Underway?

Tarique Rahman's Potential Homecoming: Preparations Underway?

3h | TBS Stories
Deposits from Bangladeshis fly high in Swiss banks in 2024

Deposits from Bangladeshis fly high in Swiss banks in 2024

9h | TBS Stories
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net