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DSE: Investors' Protector Fund

To compensate 97pc affected investors of 5 defaulted brokerages from 28 September

The Investors’ Protection Fund (IPF) has decided to fully reimburse investment amounts of up to Tk5 lakh to affected investors of five defaulting brokerage houses in the capital market. This disbursement process will begin on September 28.

As a result, approximately 17,332 investors across these five brokerage houses-representing nearly 97 per cent of all affected investors-will receive a full refund of their invested capital.

Dhaka Stock Exchange (DSE) Chairman Mominul Islam announced these details at a press conference organized by the DSE on Tuesday.

He stated that 17,925 investors are currently affected across the five defaulting brokerage houses. So far, approximately Tk37.60 crore in compensation has been disbursed through these houses and the Investors’ Protection Fund.

The DSE chairman mentioned that legal action would be taken against the defaulting brokerage houses to recover the remaining investors’ funds.

The affected investors are clients of five brokerage firms: Mashiur Securities, Tamha Securities, Crest Securities, Shah Mohammad Sagir & Co. Ltd., and Banco Securities.

If necessary, initiatives will be taken to recover funds by selling the shares of these institutions, liquidating their holdings in the DSE, and selling the personal assets of their directors.

Furthermore, if required, arrangements will be made to settle the claims of those 593 investors using future contributions to the IPF.

During the press conference, the chairman noted that for over two years, there have been no high-quality IPOs or new listings in the market.

Under these circumstances, a new draft regulation for direct listings has been framed. This will simplify the pathway for blue-chip companies to enter the capital market while ensuring an expedited processing system.

Stating that efforts are underway to simplify IPO regulations, he mentioned that rules are being revised to encourage issuers to join the market.

The revised draft may be published for public consultation within the next two to three weeks.