The Ministry of Finance has mentioned the unrestrained looting and manipulation in the stock market during the last 15 years of the Awami League government as the reason for the ongoing dire recession in the stock market. But investors were very happy after the fall of Awami government. That is why the price of Dhaka Stock Exchange (DSE) increased by 787 points in 4 working days after the fall of the government. The index began to fall after the appointment of Bangladesh Securities and Exchange Commission (BSEC) chairman.
In the beginning, conflict started in BSEC over the appointment of Mashroor Riaz. The Interim Government appointed Khandaker Rashid Maqsood, who himself resigned. Since then, the stock market has been in a terrible slump. As a reason for this, from investors to all quarters, questions about the qualification of miner Rashed Maqsood are raised.
A statement about the stock market has been given by the Ministry of Finance after the big fall in the stock market on Sunday (October 20).
It is said in the statement that in the last 15 years of the Awami League government, there has been unrestrained looting in the capital market. During this time numerous weak and non-existent companies were listed in the market. These companies are now a burden for the market. Common investors have been robbed of money by massively inflating share prices of weak fundamentals and junk companies through unbridled manipulation. Apart from this, the real condition of the market was artificially masked through various measures including imposition of minimum price level or floor price, changing the limit of circuit breakers. Now that there is no artificial effort, the inevitable consequences of irregularities and manipulations are becoming clear.
From this situation, the various steps taken by BSEC and the government to ensure good governance, development of the market and increase of investors’ confidence were highlighted in the statement. The Ministry of Finance says that BSEC is working to determine market problems and actions through discussions with market participants. Besides, the company is in talks with big industrial groups to increase the supply of good fundamental shares.
The statement also said that the initiative to list government companies has been taken to increase the size of the stock market and investment opportunities. If these companies are listed in the market, as the depth of the market will increase, the capital base of the companies will also be strengthened. And the big, medium and small investors will get the benefit of these steps. The statement also said that the government will take into account and provide benefits to those who have been affected by past calamities and scandals.
