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Crest Securities Ltd closes offices leaving investors in distress

  • Published at 08:28 pm June 25th, 2020
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Incorporated in 2006, Crest Securities ran operations from its headquarters at Dhaka’s Purana Paltan, with three branch offices in capital’s Pragati Sharani, Narayanganj and Comilla Collected

DSE has suspended all transactions of the brokerage house

The Crest Securities Limited, a corporate member and stock brokerage house of Dhaka Stock Exchange (DSE), has closed its head office and all other branches without any prior announcement.

Stock investors are now worried about the security of their investment money and shares. Managing Director Md Shahid Ullah and other officials of Crest Securities have been missing from Tuesday, the stock brokerage house's customers complained.

They said that the managing director was not found at his Dhanmondi residence and they could not contact the managing director or any other officials over the phone. 

Meanwhile, DSE has suspended all transactions of the brokerage house.

When contacted, DSE Managing Director Kazi Sanaul Hoq told Dhaka Tribune that they know about the allegations against Crest Securities. 

He said all transactions of the stock brokerage house has already been stopped and added that necessary steps are being taken.

Ataur Rahman, a stock investor at the brokerage house said cheque issued by Crest Securities had bounced. 

He said: “The house gave us a cheque to withdraw our money. But when we went to the bank, we saw that there was no money in the account.”  

"We want our shares and money back," Ataur added.

Crest Securities was incorporated in 2006. Its headquarters is at 57, Purana Paltan in Dhaka. It has three branches, one located at Pragati Sharani in the capital, one each in Narayanganj and Comilla.

The Securities house is a corporate member of the DSE and a full-service depository participant of the Central Depository Bangladesh Ltd (CDBL). 

The brokerage house is also a stock Dealer and it participates in the bidding of block subscription of shares for newly listed companies as an “Eligible Institutional Investor.”

Bangladesh Pujibazar Biniogkari Oikya Parishad General Secretary Kazi Abdur Razaaque said separate letters had been sent to stock market regulator Bangladesh Securities and Exchange Commission (BSEC) and DSE to take necessary steps in this regard.

BSEC Executive Director and spokesperson Md Saifur Rahman said: “The Commission is always working to stop any irregularities and protect the interests of the investors. We believe that we will be able to find the people and action will be taken against them.”  

Stock market insiders said investors were in a rush from last year to sell their shares to avoid further losses. They blame investors’ shaky confidence, liquidity crisis, the poor performance of companies, falling macroeconomic indicators, and the Covid-19 outbreak for the free fall.

In such a situation, the Crest Securities instance will reduce the confidence of stock investors, they said.