In a major move to prevent market irregularities and safeguard investor interests, the Bangladesh Securities and Exchange Commission (BSEC) has decided to inspect approximately 100 brokerage houses in phases. As part of intensified surveillance, the first phase of inspections will cover 10 institutions.
Abul Kalam, Executive Director and Spokesperson of BSEC, stated that the commission’s goal is to identify risks and prevent them beforehand, rather than taking punitive action after irregularities occur. He noted that this approach will ensure stronger protection for investors. He further added that since the new commission took charge, market transactions have increased and investor confidence has gradually been returning.
According to commission sources, the brokerage houses slated for inspection in the first phase include Shamol Equity Management, Vision Capital Management, Howlader Equity Services, International Leasing Securities, Ershad Securities, R. Chowdhury Securities, SAR Securities, and MAH Securities. Additionally, Azam Securities and Sinthia Securities are included in this initial list as part of their license renewal process.
Inspection Scope and Directives
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Reporting Timeline: Inspection teams have been instructed to submit their reports within 30 working days.
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Key Focus Areas: The inspections will verify brokerage and dealer activities, compliance with laws and regulations, the security of client funds and shares, the management of Consolidated Customer Accounts (CCA), and adherence to Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) rules.
The commission has already directed all brokerage houses to use unified and uneditable back-office software. According to BSEC, combining technology-driven monitoring with regular field-level inspections will enhance good governance and accountability in the brokerage sector, making it easier to prevent malpractices such as the embezzlement of client funds and shares.
In a recent exclusive interview with Dhaka Post, BSEC Chairman Masud Khan said that through regular and frequent audits and inspections of brokerage houses, necessary measures will be taken to identify risks before major irregularities occur. To this end, high-risk brokerage houses will be kept under stricter surveillance.
