Chairman of the Bangladesh Securities and Exchange Commission (BSEC) Masud Khan on Monday emphasized the need to introduce a unified, highly secure back-office software for all brokerage houses to prevent fund embezzlement and recurring financial irregularities in the capital market.
Speaking at the inauguration of the Investor Protection Fund (IPF) distribution ceremony organized by the Dhaka Stock Exchange (DSE), in its headquarters in Nikunja, Khan stated that in the digital era, authorities must have real-time access to brokerage houses' bank accounts and Consolidated Customers' Accounts (CCA).
"A unified, highly protected single back-office software must be implemented to provide real-time data so that we can conduct daily reconciliations," he said, noting that such a system would enable rapid identification of fund shortfalls or irregularities while reducing direct regulatory oversight pressure. He also stressed the importance of advancing Order Management Systems (OMS).
Disclosing figures on recent market irregularities, the BSEC chief revealed that 17,967 investors were affected by financial opacities totaling Tk 492 crore across five securities houses. Terming the accumulated problem deeply concerning, he noted that the fund distribution marks the beginning of a resolution brought about through joint teamwork between the DSE, BSEC, and the Investors Forum.
Outlining the refund process through the IPF, Khan announced that affected investors with claims under Tk 5 lakh will receive 100 percent of their money back in the first phase.
He noted that approximately 96 percent of all affected investors have claims below Tk 5 lakh, assuring that those with claims exceeding Tk 5 lakh will also be covered in subsequent phases to rebuild confidence in the stock market.
DSE Chairman Mominul Islam, Managing Director (MD) Nuzhat Anwar, Board members and victim investors also spoke in the event.