The owner of Crest Securities Md. Shahid Ullah was arrested on Monday. He had been absconding since June 23 after alleged embezzlement of a significant amount of funds and shares of his clients.
DB police personnel arrested Mr. Shahid Ullah and his wife from his cousin's house, situated in an area near the border of Noakhali-Laxmipur districts.
Amid deep worries of the clients of Crest Securities - a brokerage firm of the Dhaka Stock Exchange (DSE), the law-enforcement agencies made hectic efforts, so that he cannot flee abroad.
"A press conference will be held on Tuesday (today) at the DB office in Dhaka to brief about Mr. Shahid Ullah," said H M Azimul Haque, the deputy commissioner (DC) of DB Ramna zone.
The DC also said initially it was found that the owner of Crest Securities absconded after embezzlement of clients' funds worth around Tk 180 million.
"He also took loans worth Tk 300 million from different persons. The actual amount of investors' funds and shares, embezzled by Mr. Shahid Ullah, is yet to be determined," Mr. Haq told the FE.
According to the information of Central Depository Bangladesh Limited (CDBL), more than 21,000 active BO (beneficiary owner's) accounts were maintained by Crest Securities.
The clients' worries deepened after Mr. Shahid Ullah absconded, locking his main and all three branch offices, without informing the stock exchange authority.
The securities regulator and the DSE said interests of the clients of Crest Securities will be ensured.
The DP account of Crest Securities has already been suspended to contain transfer of any shares from the firm.
The DSE has requested its clients to submit papers in favour of their respective dues.
The premier bourse has found the investors' shares worth Tk 820 million (in latest market value) in the portfolios maintained by Crest Securities.
The DSE said the clients will be allowed to transfer their shares to other brokerage firms from Crest Securities.
In a press briefing, the premier bourse said the clients' liabilities will be settled by selling the brokerage house's TREC (Trading Right Entitlement Certificate) and its stakes found from the stock exchange.
As part of demutualisation process, Crest Securities is entitled to receive more than 7.2 million shares of the DSE.
Along with other shareholders of the DSE, Crest Securities also sold 25 per cent of its individual stake to a Chinese consortium and received Tk 37.87 million.
Its remaining 75 per cent stakes at the DSE are now in the hand of the premier bourse.
Crest Securities also took loans from a private commercial bank, keeping its 40 per cent stake in lien.
The DSE had previously urged the bank not to provide loans against stakes of Crest Securities.
"So, the whole 75 per cent stake of Crest Securities will be used to settle its dues," the DSE said in a recent press briefing.
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