DSE suspends trading rights of International Leasing Securities
Investors' funds and shares remain protected, says CEO
The Dhaka Stock Exchange (DSE) has suspended the trading rights of International Leasing Securities Ltd after the brokerage failed to meet regulatory capital requirements and address a significant deficit in its Consolidated Customers' Account (CCA).
The decision took effect on today (4 July), preventing investors from buying or selling shares through the brokerage from tomorrow.
DSE Managing Director Nuzhat Anwar told The Business Standard that the exchange took the decision as a precautionary measure to safeguard the interests of investors and protect their funds.
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"The trading rights have been suspended to ensure the safety of investors' assets and maintain confidence in the capital market," she said.
According to DSE officials, International Leasing Securities, a subsidiary of the scam-hit non-bank financial institution International Leasing and Financial Services Ltd, is currently burdened with negative equity of around Tk300 crore.
The firm's financial position deteriorated following the alleged financial fraud linked to former business executive Proshanta Kumar (PK) Halder, which severely eroded the capital base of the parent company and its subsidiaries.
Mohammad Noore Rabbi, acting chief executive officer of International Leasing Securities, confirmed the development, saying the company could not renew its licence due to its negative net worth and the deficit in its Consolidated Customers' Account.
"Our parent company's previous management, particularly the PK Halder scam, left a huge negative impact on our accounts. However, I want to assure our clients that their funds and shares remain protected," Rabbi told The Business Standard.
He said the brokerage is capable of returning clients' funds and securities but advised investors to transfer their portfolios to other brokerage houses if they wish to continue trading, as there is no certainty over when the suspension will be lifted.
Under DSE regulations, all Trading Right Entitlement Certificate (TREC) holders must maintain a positive net worth and a compliant Consolidated Customers' Account to protect client assets and ensure the stability and integrity of the country's capital market
