Tk 6.5cr clients’ fund missing at a brokerageStaff Correspondent
The Dhaka Stock Exchange on Tuesday suspended operation of MH Chowdhury Securities Ltd as per the brokerage’s request following alleged misappropriation of Tk 6.5 crore of clients’ money.
The brokerage house in a letter on Monday informed DSE that it would conduct a thorough audit of the books and records and requested for suspension of operation of the brokerage house from Tuesday.
On October 2011, the DSE monitoring team conducted an inspection of the MH Chowdhury Securities and several irregularities including deficit against clients’ payable fund of Tk 1.37 crore and deficit of electronic shares worth Tk 3.80 crore.
The DSE found unlawful transaction of shares from 60 beneficiary owners account with the brokerage firm.
DSE also found shortage of 27,800 GrameenPhone shares in 139 clients’ account with the brokerage house.
Based on the findings, the DSE conducted a hearing on 20 December 2011 as the company violated the securities rules.
In the hearing, the brokerage house said that it would settle the matter within 21 working days and sought permission for that.
The DSE on 8 February 2012 asked the broker to report the progress of the matter as the mentioned time of 21 days has ended on February 6.
The brokerage firm on 13 February informed DSE that it had settled the matter, but in an inspection by DSE on February 27 it was found that the matter was not fully resolved.
In the second hearing, the brokerage firm admitted that it was still to settle the matter due to a shortfall of Tk 3-4 crore.
On March 1, 2012, MH Chowdhury Securities in a letter requested for time extension to settle the issue until March 12.
However, on March 12, the brokerage firm informed DSE that there was a shortfall of clients’ money amounting Tk 6.5 crore and for the sake of general investors the company will conduct a through audit of its accounts.
The brokerage also requested for suspending the operation of the house until the audit is completed.
It also said that the clients of the brokerage can collect their money from the said brokerage house or transfer their shares through link accounts, if they wished to do so.
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