DSE finds Tk 18cr deficit in client accounts

The Dhaka Stock Exchange (DSE) has found a deficit of Tk 18 crore in the consolidated customers’ accounts of six stock brokerage firms.

The brokerages are DMR Securities Services, M Securities, Island Securities, Hedayetullah Securities, Bali Securities, and Sharp Securities Limited.

An inspection team from the bourse recently visited the brokerage firms 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 Bangladesh Securities and Exchange Commission.

A deficit of Tk 20.68 lakh was found in the consolidated customer accounts of DMR Securities Services, Tk 10 crore in M Securities, Tk 6.43 crore in Island Securities, Tk 10.30 lakh in Hedayetullah Securities, Tk 1.22 lakh in Bali Securities, and Tk 3.26 lakh in Sharp Securities Limited, according to the DSE probe report.

According to the securities rules, the exchange must conduct an inspection immediately for any shortage or deficit found in the consolidated customers’ accounts of any stockbroker, with intimation to the commission, as well as submit the report of inspection to the commission within seven days of the completion of such inspection.

"Those securities houses are not maintaining a sufficient fund of customers in the consolidated customers’ accounts," said a member of the inspection team.

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 the customers and the payment of money to and for the customers, according to rules.

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.

In February, the DSE found a deficit of Tk 7 crore in the consolidated customers’ account of Modern Securities Ltd.

For a similar offence, the BSEC earlier ordered the suspended Tamha Securities to liquidate its assets and deposit the proceeds at the DSE by May 31 for the reimbursement of the client’s money.

Operations of Crest Securities and Banco Securities were suspended. In June 2020, the 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.