B Mirror Desk : The Bangladesh Securities and Exchange Commission (BSEC) has suspended 617 beneficiary owner (BO) accounts due to violations and non-compliance within the capital market. In a statement to TBS, BSEC spokesperson Abul Kalam indicated that the account suspensions were executed following court directives and requests from various government entities in response to different forms of capital market infractions.

Additionally, some accounts were frozen as part of the commission’s disciplinary measures after internal investigations, he noted. Sources from the commission revealed that the majority of these accounts were frozen after the Awami League government fell in August of the previous year. Among those impacted are 33 prominent individuals associated with the former administration, with a total of 127 accounts opened under the names of their family members, relatives, or affiliated businesses, all of which are included in the 617 frozen accounts.

Furthermore, 357 accounts were blocked at the behest of the Bangladesh Financial Intelligence Unit (BFIU), the Anti-Corruption Commission (ACC), and based on court orders. An additional 109 accounts were frozen as a result of BSEC’s own enforcement actions, mainly due to share manipulation.

Moreover, six accounts belonging to owners, directors, and CEOs of asset management firms were frozen following recommendations from a BSEC-formed investigative committee.

Additionally, 18 accounts belonging to owners and directors of various brokerage firms were frozen due to the improper use of investors’ funds held in Consolidated Customers’ Accounts (CCAs). Each brokerage firm is mandated to maintain a CCA to hold unused investor funds, which can only be utilized for share transactions on behalf of clients. However, some brokerage owners misappropriated these funds for other uses, leading to fund shortages and prompting regulatory intervention.