DSE move to sell ownership of Shah Mohammad Sagir & Co

The Dhaka bourse has moved to pay the dues of clients of Shah Mohammad Sagir & Company (SMSC), a brokerage firm by selling its ownership to another party willing to purchase the firm’s assets with liabilities.

As part of its move, the Dhaka Stock Exchange (DSE) asked the SMSC to contact a party willing to purchase their company’s ownership with the liabilities.

On October 31, 2019 the Bangladesh Securities and Exchange Commission (BSEC) asked the Dhaka Stock Exchange (DSE) to take an initiative for repaying the dues of the clients of SMSC by selling its brokerage licence through auction.

Recently, the premier bourse changed its decision of conducting auction of the SMSC in the backdrop of receiving insufficient fund from the auction of another brokerage firm.

“Clients dues may not be repaid with insufficient fund that will come from the auction of the SMSC. That’s why, we have recently urged the BSEC to modify its previous order delivered to repay the clients’ dues by selling the ownership of the SMSC,” said a senior official of DSE.

He said in some cases the clients will also be able to realise their dues through relationship developed with the owners which will receive assets and liabilities of the SMSC.