DSE to reimburse Tk72 crore to over 17,000 scam-hit investors

Photo: Collected

The Dhaka Stock Exchange (DSE) will fully reimburse investments of up to Tk5 lakh to affected investors of five defaulted brokerage houses from its Investors Protection Fund (IPF), with payments set to begin on 28 September.

The investors selected for reimbursement in the initial stage were clients of Mosihor, Banco, Crest, Tamha and Sunrise Securities.

The 17,925 investors have together claimed more than Tk250 crore, and DSE has decided to reimburse Tk72 crore to 17,332 investors, representing nearly 97% of the total claimants, DSE Chairman Mominul Islam said at a press conference on Tuesday.

Around Tk37.60 crore has already been paid to affected investors from the brokerage houses and the IPF. Under the latest decision, claims of up to Tk5 lakh per investor will be settled in full from the fund.

The remaining 593 investors will require further steps to recover their dues.

Mominul said the DSE would pursue legal action against the defaulted firms and seek to recover funds through the sale of their shares and directors’ assets. If necessary, future contributions to the IPF may also be used to settle the remaining claims.

Calling the initiative both a legal and humanitarian measure, the DSE chairman said many of the affected investors were retired teachers, judges and bankers who had invested their savings in the capital market and faced financial hardship following the defaults.

He said brokerage houses contribute to the IPF from their trading commissions every six months, while a portion of the interest earned on consolidated customers’ accounts also goes to the fund.

The DSE is also working on reforms aimed at attracting quality companies to the capital market.

Mominul said a draft direct-listing rule had been prepared to facilitate the entry of blue-chip companies, while revised IPO rules could be published for public feedback within two to three weeks.

The exchange has also reduced bond listing fees and plans to offer a 50% waiver on listing fees for institutions applying for direct listing or IPOs by March 2027.

Mominul said the DSE is working with the Bangladesh Securities and Exchange Commission (BSEC), Central Depository Bangladesh Limited (CDBL) and Central Counterparty Bangladesh Limited (CCBL) to improve market efficiency and transparency.

He said coordinated efforts by the government, the regulator, stock exchanges and merchant banks would be necessary to achieve the target of bringing 10 blue-chip companies to the market.

“With the coordinated efforts of the government, the regulator, the stock exchanges and our merchant banks, we will be able to achieve this target,” he said.

DSE Managing Director Nuzhat Anwar said work is also underway to establish a separate platform for open-ended mutual funds to improve market discipline and facilitate transactions.