Being cheated by his broker, an individual investor is on his way to get remedy as securities regulator has stepped in.
Stock investor Nowsher Ahmed Tamanna, a client of the Dhaka Stock Exchange's (DSE) broker Ali Securities Ltd, bearing license number 105, had complained to the regulators that his broker is not paying two-thirds of the amount it received through selling his shares.
Nowsher sold 31,100 shares of Aftab Automobile at Tk71 each few years back. Of his Tk21,65,000 proceed, Ali Securities paid him only Tk7 lakh.
The brokerage firm failed to pay him the rest of his receivable.
In a letter to the regulator, Nowsher also complained that his trader Syed Tanvir Ahmed, an authorised representative of the Ali Securities cheated him with the shares he bought for the client.
The DSE, following a Bangladesh Securities and Exchange Commission (BSEC) order in February 2018, conducted an investigation and later informed the regulator that the trader presented false portfolio account statement to his client.
The false statement was showing that Nowsher owns 12,000 shares of Meghna Cement. But the brokerage firm's central report revealed that there were no shares of the said company in his portfolio.
This is how the trader violated his code of conduct described in the Bangladesh Securities and Exchange Commission (Stock Dealer, Stock Broker and Authorised Representative) Rules, 2000.
He also made a punishable offence according to section 18 of Securities and Exchange Ordinance, 1969.
The BSEC in its 705th commission meeting on Tuesday has decided to call the trader Tanvir for a hearing, before taking action against him.
Also, the brokerage firm will be ordered to pay the rest of the amount it owes to Nowsher within 30 working days.
When contacted, Mamun Akbar, managing director of Ali Securities, told The Business Standard that the trader left his job before Mamun's management became informed about it and he is not sure about "exactly what happened with the client and what the dispute was about."
If the regulator orders to pay the client, the firm must follow it, he said.