DSE makes uniform back office software mandatory for brokers
The move came after the revelation of the embezzlement of clients’ money and shares by a DSE broker - Tamha Securities
The Dhaka Stock Exchange (DSE), in its last board meeting on Sunday, has decided for mandatory adoption of uniform back office software for its brokerage firms.
The software will have to be built in compliance with the DSE specifications and criteria and the bourse will approve some qualified software firms as vendors, according to M Shaifur Rahman Mazumdar, chief operating officer of the DSE.
Currently, brokers use their own versions of back office software to continue their operations. A lack of uniformity, and authenticity is often making the surveillance and monitoring task tougher, he said.
The uniform software will provide a standard and help foolproof monitoring by the exchange and market regulator, Mazumdar added.
The move came after it was revealed in late 2021 that a DSE broker Tamha Securities Ltd had been using multiple back office softwares to hide its continuous acts of embezzling clients' money and shares.
The firm was reporting fake updates to clients and regulators from a parallel back office software while access to the actual software could have revealed the reality.
The DSE COO said the uniform software would have connectivity options with the DSE.
When the embezzlement was revealed, DSE halted Tamha Securities' operations. And, its owner has agreed to pay off the stolen money and shares out of sales proceeds of his brokerage business and personal wealth.