DSE disburses Tk3.21cr to 122 Moshihor Securities investors

The Dhaka Stock Exchange PLC (DSE) has begun disbursing compensation to investors affected by the embezzlement of funds by brokerage house Moshihor Securities Limited.

On the first day of the disbursement, the bourse today (29 September) handed over cheques worth Tk3.21 crore to 122 affected investors from the Investment Protection Fund (IPF), according to a DSE press release.

The cheque distribution was conducted from 9:30am to 3:30pm, and the same schedule will be followed in the coming days.

Affected investors are being individually notified via SMS of their respective cheque collection dates and times, said the press release.

On Monday, the DSE inaugurated the settlement of claims from its Investor Protection Fund (IPF) for investors affected by financial irregularities at brokerage houses.

At the event, Masud Khan, chairman of the Bangladesh Securities and Exchange Commission (BSEC), called for a unified and secure back-office software system for brokerage houses to prevent the misuse of investors' funds and detect financial irregularities in real time.

According to him, financial irregularities involving five securities houses have affected 17,967 investors, involving Tk492 crore.

Meanwhile, the DSE has identified 17,967 affected investors, of whom 17,332 will receive full payment of up to Tk5 lakh each from the IPF in the initial phase.

The settlement brings long-awaited relief to investors whose capital had remained tied up following the shutdown of Mashihor Securities in 2024.

"After Mashihor Securities closed down in 2024, a major portion of my life savings fell into deep uncertainty. Later, I applied as per DSE rules," said an investor after receiving his cheque.

"Receiving the cheque for my full verified claim today gives me immense relief and happiness. I extend my sincere gratitude to BSEC, DSE, and everyone involved in protecting investor interests," he said.

The DSE said safeguarding investor capital remains its highest priority in restoring discipline and investor confidence in the capital market.

In a major move to restore investor confidence, the DSE announced that it would begin paying compensation to 17,332 affected clients from 28 September, while introducing risk-based capital supervision and digital oversight to prevent the embezzlement of brokerage funds.

Five brokerage houses Moshihor Securities, Tamha Securities, Crest Securities, Shah Mohammad Sagir & Co Ltd, and Banco Securities allegedly embezzled substantial amounts of investors' funds.

To ensure sustainable funding for investor claims, the IPF receives contributions from brokerage trading commissions, as well as 25% of the interest earned on funds held in brokerage accounts, under a policy decision adopted in 2025.