Home ›› 24 Feb 2022 ›› Stock
The Dhaka Stock Exchange (DSE) has found a deficit of Tk 7 crore in the consolidated customers’ account of Modern Securities Ltd.
An inspection team from the bourse recently visited the brokerage firm and identified that consolidated accounts containing client funds were in a deficit of the amount, according to a letter sent by the DSE to the brokerage firm.
The delinquent brokerage firm has also been asked to explain its position about the alleged violation of the securities rules and adjust the deficit amount in three working days upon the receipt of the letter.
“The inspection team of the Dhaka bourse conducted a spot inspection at the company on February 09, 2022, and found, a deficit amount of Tk 6.99 crore payable to clients,” the letter reads.
“The stockbroker beneficiary owners’ (BO) account maintenance fees are debited from clients’ payables but not paid to Central Depository Bangladesh Limited (CDBL), said the letter.
“Modern Securities is not maintaining a sufficient fund of customers in the consolidated customers’ account,” said a member of the inspection team.
According to the securities rules, every stockbroker will open only one consolidated customer account in its name with any scheduled bank with intimation to the exchange, and the aforesaid account will be maintained only for the deposit of the money, received from and for, and the payment of money to and for the customers.
Besides, no stockbroker will in any way keep the balance of consolidated customer accounts as a lien or underlying for any purpose or lend it to any person or entity, according to the rules.
The DSE instructed the managing director and chief executive officer of Modern Securities to explain their position on the alleged non-compliances with securities-related laws and also adjust the abovementioned deficit amount in the client’s payable position.
“We didn’t take any money from the consolidated customers’ account. The figure mentioned in the report is not correct,” Modern Securities Managing Director Khugesta Nur-E-Naharin told The Business Post.
She admitted that there was an insignificant amount deficit in the account. “However, it was fixed a day after the DSE inspection.”
Naharin said, “We’re operating the brokerage house in compliance with the securities rules.”
Modern Securities maintains about 15,000 BO accounts.
Modern Securities’ case came to spotlight months after irregularities were unearthed at Tamha Securities Ltd which duped its clients and embezzled around Tk 35 crore.
In February, the Bangladesh Securities and Exchange Commission (BSEC) ordered the suspended Tamha Securities to liquidate its assets and deposit the proceeds at Dhaka Stock Exchange by May 31 for the reimbursement of the client’s money.
For a similar offence, operations of Crest Securities and Banco Securities were suspended. In June 2020, owners of Crest Securities Limited went into hiding after allegedly embezzling Tk 48 crore of clients’ money.
On June 14, 2021, the DSE suspended operations of Banco Securities for alleged misappropriation of Tk 66 crore from the customers’ accounts.
