Prolonged market volatility and a deepening confidence crisis have prompted a large number of investors to step away from Bangladesh’s capital market, leading to the emptying of more than 66,000 beneficiary owner (BO) accounts this year.
According to data from Central Depository Bangladesh Limited (CDBL), at least 66,514 BO accounts were cleared of shareholdings in 2025, reflecting widespread investor dissatisfaction amid falling indices, declining market capitalisation and ongoing economic uncertainty.
As of 24 December, the total number of BO accounts stood at 16.39 lakh, down by 42,789 from December 2024. The decline was observed across all investor categories. Male BO accounts fell by 27,884 to 12.33 lakh, while female accounts declined by 15,024 to 3.88 lakh. Non-resident BO accounts also dropped by 3,144 to 43,547.
Market insiders say the trend points to a broad-based erosion of confidence rather than withdrawals limited to any single group of investors.
Rise in Zero-Balance Accounts
More concerning than the overall decline in BO accounts is the sharp rise in zero-balance accounts. CDBL data show that BO accounts holding shares stood at 12.05 lakh, while zero-balance BO accounts increased by 23,538 to 3.67 lakh as of 24 December.
This suggests that a large segment of investors has chosen to remain in the system only nominally, without holding any securities. In addition, more than 67,000 BO accounts reportedly remain unused after being opened, indicating that many investors exited the market entirely after suffering losses.
Small Investors Leaving Faster
Data from the Bangladesh Securities and Exchange Commission (BSEC) reveal that most remaining investors hold relatively small portfolios. As of July this year, 8.31 lakh BO accounts had investments worth less than Tk1 lakh, while 2.85 lakh accounts held investments between Tk1 lakh and Tk10 lakh. Only 24,225 BO accounts held investments above Tk50 lakh.
Historical comparisons suggest that small retail investors are exiting the market at a much faster pace than institutional or high-net-worth investors.
Brokerage officials estimate that despite around 12 lakh BO accounts holding shares, the number of genuinely active investors may be limited to just four to five lakh.
Weak Market Performance Adds Pressure
Market performance in 2025 has further dampened sentiment. The Dhaka Stock Exchange’s benchmark index, DSEX, has fallen by 333 points to 4,883, while the DS30 index has dropped 57 points to 1,882. Market capitalisation has declined from a peak of Tk7.31 lakh crore to Tk6.76 lakh crore.
Investors and analysts cite a lack of quality initial public offerings, losses linked to bank mergers, persistent volatility and broader economic challenges as key reasons behind the downturn.
Market participants argue that while regulatory reforms are underway, their benefits remain uncertain in the near term. Without improved governance, stronger enforcement and a steady flow of quality IPOs, restoring investor confidence will remain a significant challenge.
Source: The Business Standard (TBS)
