BSEC had received 48 complaints from clients blaming the stock broker of embezzling the money they had deposited for applying to buy primary shares
Shah Mohammad Sagir & Co Ltd will lose its broker license after being charged with embezzling money from its clients. The licence will then be sold to compensate its victims.
Since no other initiatives have helped victims get their money back, the stock market regulator will seize the license of the 171st member of the Dhaka Stock Exchange (DSE).
The Bangladesh Securities and Exchange Commission decided to go hard-line and follow Rule 3 (1A) of The Securities and Exchange Rules, 1987, to help the broker's clients.
The BSEC also said that it had received 48 complaints from clients who blame the stock broker for not returning the money they had deposited for applying to buy primary shares.
The premier bourse investigated the issue on BSEC instructions, and found that the allegations were true.
On October 10 this year, the stock market regulator had banned the brokerage firm from trading as a depository participant to protect investors. Since this did not result in the clients being repaid, the brokerage company is going to lose its license now.
The securities regulator has also declared that it will take legal action against everyone involved in the embezzlement.