The Daily Corporate Desk
Dhaka, July 8, 2026: More than 45,000 investors in Bangladesh’s capital market have allegedly lost over Tk560 crore after seven brokerage houses were found to have misappropriated client funds and shares through fraudulent back-office software and other irregular practices, according to a report by Kalbela, citing findings from the Dhaka Stock Exchange (DSE).
The alleged frauds took place between 2019 and 2025, with the DSE’s inspection revealing that several brokerage firms bypassed approved technology systems to sell investors’ shares without their knowledge, conceal account information, and divert client funds.
According to the inspection report, Mashiur Securities accounted for the largest alleged misappropriation, involving approximately Tk161 crore. Other firms named include Tamha Securities (Tk139.70 crore), Salta Capital (Tk100.52 crore), Crest Securities (around Tk80 crore, although an audit estimated the amount at Tk105 crore), Banco Securities (Tk66.59 crore), Shah Mohammad Sagir Securities (Tk13.16 crore), and Blue Chip Securities (formerly Khurshid Securities), where more than Tk2 crore worth of investors’ shares were allegedly sold without authorization.
While the identified cases total Tk563.22 crore, the DSE report reportedly states that overall investor losses exceed Tk650 crore, though details of the remaining amount were not disclosed.
Fraud Through Fake Software and Mobile Number Manipulation
The investigation identified two primary methods used in the alleged fraud.
First, several brokerage houses reportedly operated duplicate or unauthorized back-office software instead of the systems approved by regulators. This allowed them to display different account information to the DSE and to investors, making it easier to manipulate records and conceal unauthorized transactions.
Second, investigators found that customer mobile phone numbers linked to Central Depository Bangladesh Limited (CDBL) accounts were allegedly replaced with numbers controlled by the brokerage firms. As a result, SMS notifications related to share transactions were sent to unauthorized recipients instead of investors, enabling shares to be sold without clients’ knowledge.
Bangladesh Bank Moves to Strengthen Oversight
To enhance investor protection, the Bangladesh Securities and Exchange Commission (BSEC) instructed all brokerage houses to adopt tamper-proof back-office software by 31 December 2025.
However, according to a DSE progress report cited by Kalbela, implementation remains incomplete. Although 280 brokerage houses have adopted the new software, data migration remains unfinished at many firms. Investor information has yet to be fully transferred at 118 brokerage houses, while ledger and portfolio migration remains incomplete at 102 firms. Additionally, 24 brokerage houses continue using older software systems, and 135 firms still do not send transaction notifications to clients via SMS or email.
Market analysts believe these technological weaknesses continue to expose investors to fraud and operational risks.
Regulatory and Legal Action
Regulators and law enforcement agencies have taken action against the brokerage houses involved over the years.
Following the discovery of a Tk161 crore shortfall, Mashiur Securities had its trading and depository participant (DP) operations suspended, with legal proceedings currently underway.
Tamha Securities ceased operations in November 2021 after BSEC investigators found evidence of approximately Tk139.70 crore in investor funds being misappropriated. The Bangladesh Financial Intelligence Unit (BFIU) later froze multiple bank accounts belonging to the company’s managing director and his family members.
Salta Capital came under scrutiny after a surprise DSE inspection in November 2025 identified shortages in its consolidated customer account. A subsequent investigation allegedly uncovered the misappropriation of more than Tk100 crore, while the current whereabouts of the company’s owners remain unknown.
Authorities also arrested the managing director of Crest Securities and his spouse in 2020 while they were reportedly attempting to leave the country. Banco Securities was shut down in 2021, and its chairman was arrested at the airport while allegedly attempting to travel abroad despite restrictions imposed by the Anti-Corruption Commission (ACC).
Meanwhile, Shah Mohammad Sagir Securities has remained inactive since its trading rights were suspended in 2019, and criminal cases are ongoing against Blue Chip Securities over allegations of unauthorized share sales, cheque dishonour, and failure to return client funds.
Investors Yet to Recover Losses
Despite the large-scale losses, thousands of affected investors have yet to recover their money. In 2023, the DSE’s Investor Protection Fund (IPF) compensated clients of three brokerage firms with a combined Tk35 crore, a figure considered insufficient compared with the overall losses.
Speaking to Kalbela, DSE Managing Director Nuzhat Anwar said the exchange is developing a new monitoring system that will enable real-time oversight of brokerage firms’ consolidated customer accounts and perform automatic daily reconciliations. Any irregularities detected by the system would generate immediate alerts, allowing regulators to respond more quickly.
She also noted that the DSE does not have direct enforcement authority against brokerage houses and must forward investigation reports to the BSEC for further action.
BSEC Executive Director and spokesperson Md Abul Kalam said the commission is continuing its enforcement efforts and has instructed the stock exchanges to take necessary steps to help investors recover misappropriated funds. He added that other legal measures are also under review.
Capital market analyst and Dhaka University Professor Al-Amin told Kalbela that recovering the funds could prove difficult because many of the accused firms are already facing legal proceedings. He also warned that the Investor Protection Fund is not large enough to compensate all affected investors.
He stressed that restoring investor confidence would require prioritising the recovery of client funds while strengthening regulatory oversight and encouraging investors to conduct business only through reputable and trustworthy brokerage houses.
Source: Kalbela, based on the Dhaka Stock Exchange (DSE) inspection report.
