The Dhaka Stock Exchange (DSE) will fully reimburse up to BDT 5 lakh each to 17,332 investors who incurred financial losses owing to irregularities and embezzlement by brokerage entities, disbursing the funds from its Investors Protection Fund (IPF), DSE Chairman Mominul Islam announced on Monday.

Addressing the DSE's official inauguration ceremony for the IPF disbursement, Mominul observed that participating in the capital market entails both gains and losses, noting that share price fluctuations remain a natural market dynamic.

"But when investors suffer because of irregularities by a market intermediary, it seriously damages their confidence in the market. Such incidents are not acceptable in any way," he remarked.

Mominul highlighted that multiple brokerage houses failed to uphold their duties previously, adding, "Five of them diverted investors' money or shares into their own accounts and later failed to return them.”

Data from the DSE indicates that 17,967 investors currently remain affected by these brokerage infractions. Under the initial phase of the disbursement program, 17,332 of these individuals whose claims fall within the BDT 5 lakh threshold will receive full compensation through the IPF.

Regarding those whose complete claim amounts exceed the current payout limits, Mominul affirmed that measures will be pursued to expedite the retrieval of their remaining capital, stating, "The DSE and other market stakeholders will work on this through legal means."

Expressing deep regret to the impacted investors, the DSE chief acknowledged that they had committed their hard-earned capital to the market with significant expectations.

He formally apologized for the emotional distress and financial suffering inflicted upon them due to the market irregularities.

To prevent similar occurrences moving forward, Mominul called upon all capital market entities, including the Bangladesh Securities and Exchange Commission (BSEC), both stock exchanges, the Central Depository Bangladesh Limited (CDBL) and individual brokerage houses, to maintain close coordination.

He voiced optimism that joint efforts would successfully revive investor confidence.

The chairman emphasized that auditing the credentials of all 17,967 affected investors and establishing their exact investment records alongside final balance figures presented a complex undertaking, which the DSE management successfully executed.

He expressed confidence that the upcoming refund distribution would be conducted with equal precision.

Elaborating on the funding mechanisms behind the IPF, Mominul explained that the primary revenue streams derive from brokerage transaction commissions alongside a 25 percent allocation of interest generated from Customer Consolidated Accounts (CCA).

"This DSE initiative would not have been possible without the contribution of brokerage houses," he noted.

Concluding his address, Mominul expressed hope that the ongoing positive trajectory within the national capital market would gain further momentum, emphasizing that establishing a resilient and transparent trading environment remains a collective imperative.

He added that all industry participants must collaborate to position the capital market as a foundational driver of the national economy.

With Inputs from UNB