Probe launched against Vanguard Securities over embezzling client funds
Bangladesh Securities and Exchange Commission (BSEC) launched an investigation against Vanguard Shares and Securities Limited, a brokerage house, over allegations of unauthorised trading, and embezzlement of client funds.
The BSEC already appointed three officials from three concerned organisations to look into the matter, confirmed a BSEC source.
The stock market regulator took the step after three clients of the brokerage firm, namely, Md Kamal Uddin Meyazi, Monowara Begum, and Md Mahee lodged three separate complaints to the commission against the brokerage house.
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These clients were conducting their share tradings through this brokerage house.
The officials appointed to investigate the allegation comprise BSEC Additional Director, Md Kawsar Ali; Senior System Engineer of Central Depository Bangladesh, Md Monirul Islam; and CSE official Ehsan Habib.
They are scheduled to submit an investigation report to the commission within 30 working days.
A source in the BSEC said the commission thinks it is necessary to conduct an inquiry into the matter to protect investors' interest, and stop irregularities of brokerage firms.
Vanguard Shares and Securities Limited is a member of the Chittagong Stock Exchange (CSE).
It is worth here noting that allegations of embezzlement of investors' funds, unauthorised trading, providing an illegal advantage to directors, and receiving excessive cash is not new against brokerage firms.
Banco Securities, Crest Securities, Dawn securities, Trendset Securities are the burning examples of these kinds of irregularities.
