B Mirror Report: In order to maintain discipline in the capital market and protect the interests of general investors, the Bangladesh Securities and Exchange Commission (BSEC) has decided to conduct a special investigation into Haji Ahmed Brothers Securities Limited, a brokerage house affiliated with the Dhaka Stock Exchange (DSE). To this end, the Commission has formed a three-member investigation committee and instructed it to submit a report to the Commission within a stipulated time.
According to relevant sources, multiple allegations had previously been raised against the brokerage house. Based on these allegations, the BSEC had decided to cancel the company’s trading (TREC) certificate. However, before implementing that decision, the Commission has initiated this special investigation to collect necessary evidence and review all related matters comprehensively.
Recently, an investigation order was issued by the Market Intelligence and Investigation Department of the BSEC. The order has reportedly been sent to the Managing Director or Chief Executive Officer of Haji Ahmed Brothers Securities Limited.
The investigation committee comprises BSEC Deputy Director Shahriar Parvez, Assistant Director Kulsum Akter, and Assistant Director Mohammad Saidul Islam. In line with the Commission’s directives, the committee will examine the overall operations of the brokerage house and submit its findings within the specified timeframe.
There have been allegations that during the tenure of the previous government, effective action was not taken against many brokerage houses that violated laws and regulations. However, following the recent political change, the new Commission led by Khondkar Rashed Maksud has adopted a strict stance against brokerage houses accused of client account shortfalls and financial irregularities. Market insiders believe that this investigation is part of that ongoing effort.
Speaking on condition of anonymity, a BSEC official said the investigation committee will scrutinize whether there have been any inconsistencies or violations of laws and regulations in the brokerage house’s operations. After the investigation, a report will be submitted to the Commission, and if evidence of irregularities is found, appropriate legal action will be taken accordingly.
According to the BSEC, this investigation is essential for implementing the decision to cancel the TREC certificate of Haji Ahmed Brothers Securities Limited in the greater interest of the capital market and general investors. The Commission has appointed the three officials to conduct the investigation under the powers conferred by Section 17A of the Bangladesh Securities and Exchange Commission Act, 1993, and Rule 12(3) of the Securities and Exchange Commission (Stock-Dealer, Stock-Broker and Authorized Representative) Regulations, 2000.
The investigation committee will closely review the brokerage house’s overall financial condition, client account management, compliance with securities laws, and whether there are justified grounds for cancelling its TREC certificate.
Market participants believe that in recent times the BSEC has significantly intensified its oversight to ensure financial transparency and investor protection among brokerage houses. Through regular inspections, inquiries, and investigations, actions are being taken against institutions involved in irregularities. Failure to properly safeguard clients’ funds and securities has a severely negative impact on investor confidence—an experience that has led the Commission to adopt a zero-tolerance policy.
The BSEC has clearly stated that such investigations are being strengthened as part of its efforts to restore discipline in the market and take strict action against any activities that go against investors’ interests. No further opportunity for irregularities in the capital market will be tolerated.
