Equity investors can now cross-reference portfolios
Equity investors can now cross-check their investment portfolios with Central Depository Bangladesh Limited (CDBL), the backbone of the country’s capital market infrastructure.
To achieve this, CDBL launched a monthly e-statement service on Sunday as part of its efforts to eliminate brokerage-related irregularities.
As part of this service, Beneficial Owners (BO) account holders will receive emails outlining their investments in different stocks at the end of the first week of each month so that they can identify if there is any something wrong with the brokerage firm. The service is free.
CDBL proposed such an initiative following the identification of several irregularities, where brokers defrauded investors by reporting false cash and securities balances and false buy-sell order execution updates.
“We have noticed that several brokerage firms have withdrawn funds from their clients’ accounts, using a variety of software in recent years. Investors have been tricked into it,” said Professor Shibli Rubayat-Ul-Islam, Chairman of the Bangladesh Securities and Exchange Commission (BSEC).
Hopefully the service will protect investors against fraud, he said at the e-statement initiative’s inaugural program in the capital.
“People in general won’t put their money in the capital market if their money remains unsafe,” he said, adding that brokerage firms should build trust with their customers by providing them with the best services.
BSEC Commissioners Shaikh Shamsuddin Ahmed and Abdul Halim, CDBL Managing Director Shuvra Kanti Choudhury among others were present at the event.