Saad Musa Group is buying Shah Mohammad Sagir with liability
Sunbd Desk || Published: 2021-06-21 11:11:21 || Updated: 2021-06-21 11:11:21
The ownership of the Dhaka Stock Exchange (DSE) member (171), the country’s main capital market, is changing. The DSE stopped the transaction on charges of embezzling huge sums of money from customers against the company. Since then, the company has come under pressure. The company is giving up ownership to be free from stress. This information has been known from the relevant sources.
Regarding starting a brokerage business, Muhammad Mohsin, chairman and managing director of Saad Musa Group, said, “We are buying Shah Mohammad Sagir & Company for humanitarian reasons.” We are taking 100% ownership of the company with all kinds of liabilities. Our business activities will start from the previous office without changing the name.
However, Tahmina Zaman, chairman of Shah Mohammad Sagir & Company, said, “I can’t comment on the change of ownership.”
According to BSEC sources, 48 complaints were lodged against Shah Mohammad Sagir & Company Limited after the Bangladesh Securities and Exchange Commission (BSEC) introduced the new Customer Complaints Address Module (CCAM). Much of this is related to non-refund of customer deposits for initial public offering (IPO). DSE has conducted inspection activities in this regard as per the instructions of the commission. The inspection report found that Shah Mohammad Sagir & Company had embezzled huge sums of money from customers.
In this situation, two decisions have been taken in the 703rd commission meeting of BSEC. First, the BSEC will direct the DSE to take immediate action against Shah Mohammad Sagir & Company under Rule 3 (1A) of the Securities and Exchange Rules, 1987 for immediate payment of customer dues. Under this section, the registration certificate of the accused brokerage company has been confiscated and it has been asked to make arrangements to pay the dues of the customers by selling it. The second decision is that the DSE will be directed to file a case under the Criminal Procedure Code against those responsible for the embezzlement.
It may be mentioned that the trading activities of Shah Mohammad Sagir & Company are currently closed due to various allegations. As per the decision taken at the 700th Emergency Commission meeting of BSEC, the activities of the Depository Participant (DP) of the organization are also closed.
On 17 October 2019, BSEC sent two separate letters to the Chairman of DSE and the President of DSE Brokers Association of Bangladesh (DBA) regarding Shah Mohammad Sagir. In the letter, the commission called on the DSE and DBA to play a direct and effective role in protecting the assets of the customers. However, under the direction of the commission, DSE has already conducted inspections at Shah Mohammad Sagir & Company, where the issue of embezzlement of customers’ money by the company has come up.
Muhammad Mohsin, chairman of Saad Musa Group, said, “Our main business is clothing. I have been in business for 36 long years. I started with 20 workers. At present my organization employs about 12,000 people. Hopefully we will do something good in broker business too.
Saad Musa Group started its business in 1982 with the garment sector. One by one, the organization was formed by its founder Muhammad Mohsin. Launched fabrics, spinning, weaving, dyeing, printing and finishing factories. Established export oriented industrial park.
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