Market participants said nearly 100 brokerage firms have come under investigation over the past one and a half years.
The Dhaka Stock Exchange (DSE) Brokers Association (DBA) has urged the stock exchange to avoid what it called “unnecessary harassment” of brokerage houses, particularly in cases where inspections or investigations could disrupt their normal business operations.
The association made the request at a meeting with the DSE today (8 September), where members of the DSE board were present. The meeting discussed recent inspections of brokerage houses and their potential impact on the capital market.
Market participants said nearly 100 brokerage firms have come under investigation over the past one and a half years. Of these, around 8 to 10 brokerage firms were reportedly inspected or investigated last week.
DBA President Saiful Islam told TBS that the association does not oppose investigations by the Bangladesh Securities and Exchange Commission (BSEC) or the stock exchange.
“We do not want unnecessary harassment of brokerage houses. The aggressive approach taken by the stock exchange in investigating brokerage houses has had a negative impact on the market, which is not desirable,” he said.
He said routine investigations were necessary and that appropriate action should be taken if any brokerage house was found to have committed irregularities.
“Routine investigations can take place. If any brokerage house has committed an irregularity, it should be appropriately punished. But it should not be done in a way that creates a negative impact on the market,” he said.
Saiful said several brokerage houses have recently faced investigations, and the way these incidents have come into the public domain has negatively affected both the concerned firms and the broader capital market.
“Investigations should be conducted in a tolerable manner so that there is no disruption to business activities. We should not feel stressed, and there should be no damage to the market,” he said.
DSE’s position
Responding to concerns over excessive intervention in brokerage houses, the DSE chairman said the exchange’s board does not interfere in the day-to-day activities of its Regulatory Affairs Department. Instead, the board provides policy-level guidance.
He said the DSE would investigate or conduct inquiries into specific matters when there is information indicating particular irregularities.
The DSE chairman also urged member firms to resolve any shortages in their CC accounts, shares or other assets on their own initiative and without delay.
Such shortages not only affect the operations of the concerned firms but also damage the reputation of the capital market’s overall ecosystem, he said.
“To make the market more disciplined, transparent and aligned with international standards, all stakeholders must properly perform their respective responsibilities. Through collective efforts, it is possible to take Bangladesh’s capital market to a new height within the next five years,” he said.
He also called on member firms to share their problems, concerns, recommendations and new ideas with the DSE, saying the exchange wants to make its market-development initiatives and future activities more effective based on the practical experiences and views of its members.
Why recent inspections were conducted
The DSE said some compliance and surveillance inspections from 2025 remained unresolved and needed to be completed through the submission of reports to the BSEC.
The recent inspections of brokerage houses were conducted as part of the process of completing those outstanding inspections, it said.
Participants at the meeting also stressed the need for clear and specific criteria for determining abnormal trading.
They said high trading volumes in a particular period should not, by itself, be considered an irregularity. Instead, assessments should take into account the nature of the transactions, their impact on share prices, the investor’s financial capacity and the instructions given for the trades.
Saiful Islam said the concerns of brokerage houses were discussed in the presence of the DSE board, which he said agreed with the points raised by the DBA.
He added that the DSE managing director assured the association that such problems would not recur in the future.
Source: The Business Standard
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