The Bangladesh Securities and Exchange Commission (BSEC) has ordered the managing director and directors of Tamha Securities to sell its assets and deposit the proceeds at Dhaka Stock Exchange (DSE) by May 31.

The BSEC passed the directive through a letter in a bid to ensure reimbursement of funds of general stock investors which were embezzled by the broker.

Recently, a group of investors who fell victim urged the BSEC to take action immediately, citing that they were passing days in peril losing their hard-earned money.

The BSEC said the premier bourse would reimburse the victim investors from the sale proceeds and the brokerage would have to update the regulator on the return on a weekly basis.

Last December, the DSE suspended trading of the stock brokerage firm on receiving allegations of it embezzling investors' money.

The BSEC has unearthed a deficit of Tk 87 crore in the consolidated customers' account.

"For the sake of general investors, Tamha Securities' trading, business operations and activities as a depository participant have been halted," said the premier bourse in a circular.

However, investors are allowed to transfer shares by opening a linked account with any other stock brokerage firm.

Mizanur Rahman, a stock investor, said it was a good step to hasten the reimbursement process.

Alongside, it should be handed down exemplary punishment, he said.

The stock investor urged the regulator to fast check other stock brokers' issues to see whether they had siphoned off peoples' funds.

Many investors lost money in the last 12 years from the closure of at least five brokerage houses, which sold off investors' shares and refrained from carrying out purchase orders even after accepting funds.

Embezzlement of funds has intensified in recent years.

Three brokerage houses – Banco Securities, Crest Securities and Tamha Securities—were shut in the last two years for allegedly embezzling around Tk 200 crore of general investors.

In the middle of 2021, the trading activities of Banco Securities were suspended following an allegation of siphoning off Tk 66 crore.

The DSE suspended the trading of Crest Securities in 2020 for embezzling Tk 48 crore.