BSEC chief stresses year-round efforts to protect investors from digital fraud

Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan has stressed the need for year-round awareness programmes to protect investors from digital fraud, fake investment advice and promises of unusually high returns, while outlining initiatives to develop the capital market.
He made the remarks at a seminar titled “Digital Deception and Scam Alert”, jointly organised by Dhaka Stock Exchange PLC (DSE) and the DSE Brokers Association of Bangladesh (DBA) on Monday. Held at DSE Tower in Nikunja, Dhaka, the seminar marked the conclusion of World Investor Week 2026.
The seminar was chaired by DBA President Saiful Islam, with Masud Khan as chief guest. BSEC Commissioners Tanvir Habib Rahman, Advocate Nahid Mahatab, Md Nafiz Al Tarik, CFA, and Hossain Sadat, FCS, attended as special guests, while DSE Chairman Mominul Islam delivered the welcome address.
Masud Khan said investor awareness and protection must continue throughout the year, despite the conclusion of the week-long programme. Key initiatives underway include expanding open-end mutual funds, developing licensed mutual fund agents and financial advisers, reforming IPO rules, introducing direct listing regulations and launching new investment products.
Discussions are also underway with relevant stakeholders on introducing T+1 settlement and scrip netting, which he said could expand market activities and investment opportunities.

Emphasising the need to verify financial information before investing, Masud Khan advised investors to analyse companies’ financial statements, particularly operating cash flow, rather than relying solely on reported profits. He urged them to assess companies’ actual financial capacity and fundamentals and avoid unverified information and unrealistic return promises.
DSE Chairman Mominul Islam called for coordinated efforts by regulators, stock exchanges, brokerage firms, the media and investors to combat digital fraud, misinformation and misleading campaigns. He said the spread of social media had fuelled scams involving fake identities, deceptive investment advice and promises of overnight profits, causing financial losses and eroding investor confidence.Abu Nur Mohammad Hasanul Karim, general manager of the DSE’s ICT Division, presented the keynote paper, outlining fraud techniques involving fake social media investment groups, fraudulent trading platforms, identity theft, phishing and the misuse of artificial intelligence. He urged investors to verify information, question unrealistic profit promises and protect their personal and financial data. He also called for coordinated action by the DSE, regulators and brokerage firms to strengthen digital security and investor confidence.
BSEC Commissioner Md Nafiz Al Tarik, CFA, cited the Ponzi scheme operated by Bernie Madoff, noting that fraudsters do not always promise unusually high returns; some attract investors with claims of consistent, stable profits. Investors should verify the credibility of schemes offering positive returns despite market fluctuations and establish the actual source of those returns, he said.
He added that the desire for quick and easy profits could expose people to fraud in investments, e-commerce and other sectors, making proper verification essential before any financial transaction.
In his closing remarks, DBA President Saiful Islam called for policy support to prevent excessive selling pressure amid the capital market’s current challenges. He expressed concern over the potential impact of relevant Bangladesh Bank decisions and urged the authorities to cooperate in maintaining market stability.
He said a request had been made to raise the previously approved allocation for supporting the capital market from Tk200 crore to Tk300 crore. He urged the BSEC chairman to discuss the proposal with the Bangladesh Bank governor and other relevant authorities.
Saiful Islam also proposed extending the validity of financial statements for IPOs from 120 days to 180 days, saying companies awaiting the new IPO rules needed more time to complete procedures, including special audits. He called for considering temporary exemptions in view of the new rules.
The panel discussion, moderated by Saiful Islam, featured Asifur Rahman, FCA, vice-president of the Institute of Chartered Accountants of Bangladesh (ICAB); Mohammad Shahjahan, FCS, president of the Institute of Chartered Secretaries of Bangladesh (ICSB); and Mahtab Osmani, CFA, president of CFA Society.

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