B Mirror Report : For investors in the stock market, the decision to close nine non-bank financial institutions (NBFIs) that were beset by poor management and loan defaults has come as fresh bad news. The central bank finally decided to dissolve these institutions on November 30 of last year; eight of them are listed on the nation’s stock exchange. This significant shock to the financial sector has increased the risk to the savings of regular people at a time when investors are already confused after losing money in the banking industry.

Although Bangladesh Bank has assured depositors that their money will be returned, no clear announcement has yet been made regarding the interests of general shareholders. In this context, the regulatory authority, the Bangladesh Securities and Exchange Commission (BSEC), has intervened. In a letter sent to the Governor of Bangladesh Bank last week, the BSEC requested that the investments of general investors be protected in the process of liquidating the nine NBFIs. The Commission believes that ordinary investors are not responsible for the fate of these institutions; rather, the blame lies with the boards of directors and the concerned management.

The institutions on the liquidation list include FAS Finance, BIFC, Premier Leasing, Far East Finance, GSP Finance, Prime Finance, People’s Leasing, and International Leasing. In addition, Aviva Finance, which is not listed on the stock market, is also on the list. Following the enactment of the “Integrated Bank Resolution Ordinance, 2025,” this marks one of the largest financial institution closure processes in the country’s history, in which the central bank has taken direct responsibility for asset sales and settlement of liabilities.

Market insiders note that when five banks were previously merged, investors lost shares worth nearly BDT 45 billion, whose value dropped to zero overnight. Fearing a repetition of the same scenario in the case of NBFIs, intense anger and panic have spread among investors. In its letter, the BSEC put forward five specific demands. Notable among them are—regular disclosure of information to investors, ensuring a share for general investors if any government compensation is provided, and considering either the face value or the market value of shares, whichever is higher, as the minimum claim. The Commission also stated that under no circumstances should these institutions be delisted from the stock exchange without determining the value of general investors’ shares.

Regarding this crisis, Professor Abu Ahmed, Chairman of the Investment Corporation of Bangladesh (ICB), has offered strong criticism. He believes it is unjust to shift the burden onto general investors for the imaginary mountains of assets that companies and auditors had long portrayed by providing misleading information to regulators. Since ordinary people have no role in the legal complexities, the government and the central bank should, on humanitarian grounds, arrange at least partial compensation.

According to the latest data from the Dhaka Stock Exchange, a vast amount of ordinary people’s money is trapped in these soon-to-be-closed institutions. General investors hold 72.94 percent of shares in People’s Leasing and 79.25 percent in FAS Finance. Additionally, general shareholders own 58.10 percent of Premier Leasing, 53.22 percent of GSP Finance, and 48.48 percent of Far East Finance. International Leasing and Prime Finance also have significant general investor shareholdings, which are now on the verge of being completely wiped out.