DSE warns against dealings with Moshihor Securities over fraud

Dhaka Stock Exchange (DSE) logo_11zon

The Dhaka Stock Exchange (DSE) has issued a warning to investors against conducting transactions with Moshihor Securities Limited after suspending the brokerage's trading and Depository Participant (DP) activities.

In a statement, the DSE advised existing clients to transfer their shares to other trading companies.

Clients can move the shares held in their BO accounts to another TREC-holder company by completing the prescribed form for opening a linked BO account.

Investors owed funds or shares by Moshihor Securities must download and complete the complaint form from the DSE's official website and submit it, along with relevant documents like portfolios and their signature, to the DSE by October 30.

The suspension follows reports that Moshihor Securities allegedly misappropriated Tk 161 crore from investors—Tk 68.58 crore from clients’ Consolidated Customer Accounts (CCA) and Tk 92.35 crore through share sales.

This is reportedly the largest fraud by a single brokerage in the country's capital market history.

Moshihor Securities was one of the country's largest brokerage houses by client accounts, maintaining nearly 200,000 BO accounts, with about 44,000 active, according to the Central Depository Bangladesh Limited (CDBL). - UNB