Brokers thank BSEC over eases restriction on frozen BOs

The DSE Brokers Association of Bangladesh (DBA), an organisation representing stockbrokers in the capital market, has welcomed the decision to allow the resumption of trading in long-suspended beneficiary owner (BO) accounts.

The organisation expressed its sincere thanks and gratitude to the Bangladesh Securities and Exchange Commission (BSEC) for taking the decision in the greater interests of investors and the capital market, according to a press release issued today (4 November).

Yesterday, the BSEC decided to ease trading restrictions on some long-frozen BO accounts as part of efforts to regularise stock trading.

According to the BSEC, around 617 BO accounts, including those belonging to several high-net-worth individuals and people linked to the Awami League, had been frozen for more than two years.

Of these, around half were frozen by the commission over allegations of share manipulation, with some account holders also facing hefty fines. The remaining accounts were frozen following directives from courts and the Bangladesh Financial Intelligence Unit (BFIU).

“In this context, the DBA submitted a written application to the BSEC on 20 July, requesting necessary measures to reactivate the long-suspended BO accounts, provided there were no legal or regulatory restrictions imposed by relevant regulatory or government authorities,” the press release said.

DBA President Saiful Islam expressed heartfelt thanks to the commission for giving due importance and consideration to the association’s application and deciding to reactivate the frozen BO accounts to allow trading.

The DBA believes the decision will enable trading in a large volume of shares that have remained locked for a long time, increasing market liquidity and trading volume, boosting investor participation and helping restore confidence in the capital market.

“In particular, margin loan providers, including stockbrokers and merchant banks, will regain the ability to overcome longstanding financial and commercial difficulties and resume normal business operations,” it said.

The decision will also help maintain the financial capacity and operational continuity of the institutions concerned while enhancing participation and dynamism in the overall capital market, the DBA added.