Dhaka, Sep 03 (V7N) – Investors are growing increasingly worried following reports that nine financially weak institutions are set to be closed. They fear they may lose their investments if the firms are liquidated without proper safeguards.

The institutions on the closure list include FAS Finance, Fareast Finance, BISF, International Leasing, People's Leasing, Aviva Finance, Prime Finance, Premier Leasing, and GSP Finance. Of these, eight are listed in the capital market, where thousands of retail investors hold shares. Share prices of these companies, already at rock bottom, fell further after news of their possible closure.

Ahmed Rashid Lali, former president of the Brokers Association of Bangladesh (DBA), voiced concern:

“All eight companies are listed, and many investors have significant holdings there. Is BSEC thinking about this? What steps are being taken to ensure investors are not harmed? The delisting regulations do not provide any protection. BSEC must sit with Bangladesh Bank to find a way.”

While Bangladesh Bank has reportedly finalized the decision, the Bangladesh Securities and Exchange Commission (BSEC) said it has not yet been formally informed.
BSEC spokesperson Abul Kalam stated:

“As a listed company, they will inform BSEC about this. Once we are officially notified, BSEC will take all necessary steps under the law to protect investors’ interests.”

On the other hand, Bangladesh Bank maintains that investors, being shareholders, are considered owners of the companies. Their claims will be considered during liquidation, but depositors will have priority in repayment.
Executive Director Arif Hossain Khan explained:

“Liquidation will be carried out under the Liquidation Law. Entrepreneurs, small investors, and depositors will bear liabilities in proportion to the assets available. However, depositor protection will come first.”

Analysts warn that without coordination between Bangladesh Bank and BSEC, small investors may face serious losses, adding fresh instability to the already fragile capital market.

END/SMA/AJ