The interim government has been appointed Khandkar Rashed Maqsood as the chairman of capital market regulatory body Bangladesh Securities and Exchange Commission (BSEC) The expectation was that the capital market would turn around. But the fall is not stop at all.
The analysis showed that after the fall of the Awami League government on August 5, there was an upswing in the capital market due to the initial euphoria. From August 6 to 14 the market capitalization rose with the index rising by nearly 800 points in four working days. On August 14, the market capitalization stood at 7 lakh 11 thousand 871 crores. But from the next day, the price keeps decreasing. The market capitalization stands at 1 thousand crore Taka. 6 lakh 71 thousand 210 crores, which is less than two months by 40 thousand 660 crores. Among them, the regulatory body BSEC has in the past sent 28 companies to Z category for various reasons, including investigation committee on increase in share prices of various companies, fines on private companies for manipulation in share price increase. , and non-distribution of declared dividend. These events caused panic among investors and continued price declines. In this, a 5-member task force has been formed after meeting with the stakeholders to create a roadmap for capital market reform.
Khandkar Rashid Maqsood joined as Chairman of BAC on August 19. Since then there has been a continuous decline in the stock market. According to DSE sources, after August 19 transaction, the capital of DSE was Tk 6 lakh 95 thousand 571 crore. Which stood at 6 lakh 74 thousand 416 crores on October 9. That is, after the accession of the BSEC chairman, 6 lakh 74 thousand 416 crores of Tk were traded in the capital. The main stock market of the country decreased by 21 thousand 155 crores. That means the manipulation circle is playing with the stock market, said those concerned. BSEC Chairman Khandkar Rashed Maksud said that all those related to the country’s capital market should play a necessary and appropriate role in the development and reform of the capital market from their respective positions. Besides, the regulatory body BSEC and all stakeholders related to the capital market should come forward to build a prosperous and successful capital market.
Due to lax monitoring and lack of punitive measures by regulatory agencies, many investors lost their hard-earned money in the stock market and eventually quit stock trading. At least 4 stock brokerage firms have been accused of misappropriating investors’ money despite buying good shares. About 70 brokerage firms also partially embezzled investors’ money. Even the safest mutual funds have defrauded investors. Because several wealth management firms have misused mutual fund funds without precedent. Although they were appointed to protect and manage these investments. Analysts blame the Bangladesh Securities and Exchange Commission’s (BSEC) lack of oversight and lack of proper penalties against manipulation for violating regulations.
DSE Brokers Association of Bangladesh (DBA) President Saiful Islam said the commission has assured necessary reforms in the existing laws and regulations which are inconsistent and hampering business. We are also hopeful.
