Investors of Moshihor Securities asked to apply by 30 Oct to recover shares, funds

The Dhaka Stock Exchange (DSE) has called on clients of Moshihor Securities Limited to apply by 30 October for the transfer of their existing shares or recovery of funds, following the suspension of the brokerage firm's trading and depository operations amid allegations of large-scale fund misappropriation.

In a public notice, the DSE informed that transactions and depository participant activities of Moshihor Securities have been halted due to serious financial irregularities.

Clients holding shares under the firm's beneficiary owner (BO) accounts are advised to transfer their holdings to other brokerage firms by submitting the prescribed CDBL Form-16, duly filled and signed, to open a linked BO account elsewhere.

The DSE further stated that investors owed funds or shares from previous transactions must submit applications to claim their dues within the stipulated deadline. The official complaint form is available for download on the DSE website.

The notice follows revelations that Moshihor Securities had been misappropriating client funds for years by manipulating back-office systems and using multiple databases to evade regulatory oversight.

A DSE investigation found a Tk68.58 crore shortfall in the company's consolidated customers' account as of 19 August, compared to Tk75 crore in May this year.

In response, the Bangladesh Securities and Exchange Commission (BSEC), now led by Chairman Khondoker Rashed Maqsood, has initiated firm actions, including seeking a travel ban on key officials of Moshihor Securities and forming a five-member committee to investigate the fund misappropriation.

The DSE has warned that failure to apply within the deadline may delay the settlement of investors' claims. The stock exchange emphasised that the transfer of shares and recovery of funds must be completed strictly through the official process to ensure transparency and investor protection.