The Financial Express

DSE broker decamps with investors’ fund

Tensions run high as cheques bounce

FE REPORT | Published: June 26, 2020 09:24:51 | Updated: June 28, 2020 10:59:25

DSE broker decamps with investors’ fund

Crest Securities Ltd, a member of Dhaka Stock Exchange (DSE), has shut down its head and branch offices without informing the exchange authority.

According to insiders, the officials of Crest Securities have remained out of contact for last two days triggering tension among its clients.

The incident came to light when a cheque, provided to the DSE by the Crest Securities, bounced as there was no money in the bank account.

Some other cheques provided with others clients of the brokerage house also bounced.

"We have suspended the DP (depository participant) account of Crest Securities. We have also started the procedure to ensure the safety of the clients," said Kazi Sanaul Hoq, managing director of the premier bourse.

Mr. Hoq has requested the clients to provide the DSE with necessary papers for safety of their investments made through Crest Securities.

"The brokerage house's shares have been kept in the account of the premier bourse. The dues of clients will be paid by selling the shares of Crest Securities if necessary," said the managing director of the premier bourse.

President of DSE Brokers Association (DBA) Sharif Anwar Hossain said there had been no incidence of closing any brokerage house without informing the exchange.

"The brokerage house has shares kept with the stock exchange. So, the exchange will secure the interests of clients as per the existing rules," said the DBA president.

The cell phone of Md. Shahid Ullah, managing director of Crest Securities, was found switched off.

Three branch offices of Crest Securities have also remained closed.

When asked, an executive director of Bangladesh Securities and Exchange Commission (BSEC) said that initially the DSE would investigate the incident as Crest Securities is their member.

"We will intervene in the incident when the DSE refers the matter to us," he added.


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