Stock investors yesterday demanded reforms in the Bangladesh Securities and Exchange Commission (BSEC) by way of changing the top officials for their failure to uphold the capital market’s integrity.
In the last three months, DSEX, the benchmark index of the Dhaka Stock Exchange, plunged 454 points, or 8.86 percent, and lost Tk 27,300 crore in value -- in a damning evidence of the low investor confidence in the market.
The commission failed to curb rampant manipulation of many stocks, which dented investors’ confidence that led to the market’s slump, Mizanur Rashid Chowdhury, president of the Bangladesh Capital Market Investors Association told a press conference held at the National Press Club in Dhaka.
The present commission also failed to get merchant banks to bring companies with solid performance records into the market.
At the same time, many poorly-performing companies got listed during the period, and investors suffered by pouring money in to the stocks.
Subsequently, Chowdhury called for wholesale reforms in the BSEC, the Dhaka Stock Exchange, the Chittagong Stock Exchange and the Investment Corporation of Bangladesh as their top officials were responsible for the current confidence crisis.
He presented a 21-point demand, which if met would bring back investor confidence.
The demands include: forming a Tk 10,000 crore fund, forcing sponsor-directors to hold on to at least 30 percent of the shares jointly, listing multinational and profitable big business groups, executing exemplary punishment for manipulators, stopping forced sales and waiving interest rates of margin loans.
Siddiqur Rahman, one of the investors, said they placed their demands before the government on July 18 but no step has been taken yet.
“So, the stock market continues to suffer.”
