Senior Reporter: From now on, investors will get interest at the end of the year on the cash deposited in their Beneficiary Owners-BO account.
In the interest of investors in the capital market of Bangladesh, the regulator BSEC has directed the brokerage houses to pay interest against the unused money deposited by the customers.
The directive issued by the Bangladesh Securities and Exchange Commission (BSEC) on Monday said the decision was taken in line with the new policy of the Securities and Exchange Rules 2020 passed last year.
As a result, now if an investor deposits money in a brokerage house, but does not buy all the money shares and that money stays in the house’s client integrated account for a certain period of time, he will get interest.
Investors have not received any interest for so long. However, the houses received interest from the bank against the money deposited by them. Under the new guidelines, the brokerage house will now pay a portion of that money to the investor, excluding expenses from the interest it receives from the bank.
As per the rules, the money deposited by the investors is a customer integrated account opened by a brokerage house in a bank which is known as Customer Consolidated Account (CCA).
The House does not have the opportunity to use this money for any purpose other than buying the shares of the customer. However, in recent times, several brokerage houses have seen a shortage of money in this account.
The BSEC has also taken action against several houses for using customers’ money through irregularities. Some houses have used the money of investors deposited in CCA to break it. There have also been incidents of money laundering.
By using this money illegally, the houses have put the money invested by the investors at risk. In such a context, the regulator has asked investors to protect the money lying around as well as to pay interest on unused money.
For so long, the houses have been making profitable profits from this money of the investors.
The new directive further states that if the brokerage house’s money remains after the investors have been paid their profits as per the rules, it will have to be deposited in the investor protection fund of the stock exchange.
The directive states that CCA’s money cannot be made permanent deposit-FDRO.
Source: Daily StockBangladesh by www.dailystockbangladesh.com.
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