More than 100 of the 617 frozen beneficiary owners’ (BO) accounts are set to regain share trading access after the Bangladesh Securities and Exchange Commission (BSEC) decided on Tuesday to ease restrictions on selected accounts, allowing investors to buy and sell shares but not withdraw cash.
The decision, taken at a commission meeting on 3 November, followed applications from individual investors seeking relief from the restrictions.
The selected account holders will also be allowed to deposit fresh funds, adjust margin loans and settle related financial obligations, BSEC spokesperson and Executive Director Md Abul Kalam told TIMES.
A BSEC official said more than 100 accounts would initially receive the facility, adding that the commission could increase the number later. Cash withdrawals will remain prohibited until the related complaints and investigations are resolved.
AKM Waresul Karim, dean of the School of Business and Economics at North South University, described the decision as “totally unfair.”
He said the restrictions would still allow investors accused of wrongdoing to sell their shares without withdrawing the proceeds.
Some investors, he added, might even want to offload their holdings for free.
Karim questioned whether the regulator should focus on increasing trading activity rather than addressing irregularities. Comparing a rising market index to a diagnostic test, he said a favourable result did not necessarily mean a patient was healthy.
Given the stock market’s weak condition, he argued, an increase in the index alone should not be considered a positive sign.
The 617 accounts were frozen during the tenure of the BSEC commission led by Khondoker Rashed Maqsood, following the fall of the Awami League government in August 2024, amid allegations of corruption, illegal wealth accumulation, market manipulation and other irregularities.
Of the total, 484 accounts were frozen following instructions from the Bangladesh Financial Intelligence Unit (BFIU), the Anti-Corruption Commission (ACC) and court orders. Another 109 were frozen through BSEC’s own regulatory measures over alleged market manipulation and other irregularities.
The remaining 24 accounts comprised 18 brokerage dealer accounts frozen over shortfalls in consolidated customer funds and six accounts associated with asset management companies.
Among the 484 accounts were 127 BO accounts held in the names of family members, associates and related businesses of 33 influential individuals linked to the previous Awami League government.
Those linked to the accounts include former home minister Asaduzzaman Khan Kamal, former foreign minister Mohammed Hasan Mahmud, former information and broadcasting state minister Mohammad Ali Arafat, former information and communication technology state minister Zunaid Ahmed Palak, former land minister Saifuzzaman Chowdhury Javed and former inspector general of police Benazir Ahmed.
The ACC is investigating allegations of corruption and illegal wealth accumulation involving several of these individuals and their associates.
The 109 accounts frozen under BSEC’s own regulatory measures include those linked to controversial investor Abul Khayer Hiru, his associates and cricketer Shakib Al Hasan.
Hiru has faced multiple fines over alleged share-price manipulation in the past five years and was considered an influential investor under the previous BSEC commission.
In a letter dated 27 October, Hiru sought the removal of restrictions on BO and bank accounts held in his name and those of his family members, associates and related businesses. The application said the bank accounts had been frozen following BFIU instructions.
The letter named Kazi Sadia Hasan, Abul Kalam Matber, Konika Afroze, Aleya Begum, Mohammad Basher, Sajed Matbar, Kazi Farid Hasan and Kazi Fuad Hasan.
It also listed Monarch Holdings, Monarch Mart, Eshaal Communication, Monarch Express, Monarch Hotel & Resorts, Monarch Infrastructure, Monarch Leather Industries, Monarch Food, Monarch Electronics, Monarch Space Exploration, Lava Electrodes Industries and Desh Ideal Trust Cooperative.
Hiru said the restrictions had made it difficult for the individuals and businesses concerned to meet financial obligations, conduct regular business and make necessary transactions. He asked the authorities to lift the restrictions in accordance with applicable laws and regulatory directives, pledging compliance.
The restrictions also cover brokerage-related accounts following allegations that some firms used investors’ unused funds for purposes other than share transactions.
Brokerage houses maintain separate bank accounts, known as consolidated customers’ accounts (CCAs), to hold clients’ unused money. The funds can be used only for share transactions carried out on behalf of customers.
Allegations that some brokerage firms diverted the money for other purposes led to shortfalls in their CCA balances and regulatory action against their owners, directors and dealer accounts.
The firms involved include Moshihor Securities, Dhanmondi Securities and PFI Securities. Moshihor Securities was accused of misappropriating about Tk169 crore of clients’ funds.
Dhanmondi Securities had a CCA shortfall of Tk7.74 crore as of 20 August 2025, while PFI Securities had a shortfall of Tk27.62 crore as of 7 July 2026.
Trading in shares of all three firms has been suspended. BSEC also took action against dealer accounts and the accounts of owners and directors over the customer-fund shortfalls.
