Thousands Of Investors Are Closing BO Accounts Due To Prolonged Recession.

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Thousands Of Investors Are Closing BO Accounts Due To Prolonged Recession.

 

A generation turned away from the stock market due to prolonged recession. Because of this, no new investors are coming to the stock market. Again the existing investors are exiting the market as they cannot bear the burden of losses for a long time.
According to the data of CDBL, the number of BO accounts including shares in the country’s stock market was 13 lakh 5 thousand 751 on the last day of the recently concluded financial year on June 30. On the last working day of last week ¬†July 4, the number of BO accounts including shares decreased to 13 lakh 2 thousand 346. That is, in just four working days, all the shares held as 3 thousand 405 BO have been sold by the concerned investors. As per rules, if an investor sells all shares from his BO account, the account should remain as share less BO. As the BO account with shares decreases, the BO without shares will increase. But that didn’t happen in this case. Because most of the BO accounts that sold the shares have been closed.
According to the CDBL sources, according to the conventional rules, the BO account has to be updated in the month of July every year with an annual fee. Those who do not want to pay the annual fee, close the BO account by selling the shares. This reduces the number of active BO accounts in the market. At the end of last week, the active BO account of the stock market decreased by about 4 thousand to 17 lakh 71 thousand 125. On June 30, this number was 17 lakh 75 thousand 146. Accordingly, 4 thousand 21 active BO accounts have been closed in the stock market in the last four working days.
Market participants say that the stock market has been in recession for several years. In the recently concluded financial year 2023-24, the main stock market Dhaka Stock Exchange (DSE) main index DSEX has decreased by 1 thousand 15 points or 16 percent. At this time, the index fell from 6 thousand 343 points to 5 thousand 300 points. As a result, disappointed investors are leaving the market. For a long time, the minimum price level or floor price was imposed on the shares, so the investors could not sell the shares even if they wanted to. But from last January 19, this floor price was removed step by step. Even though the market prices started falling, it created an opportunity for investors to sell shares. In this opportunity, many investors sell shares at a loss, but are leaving the market.
CDBL-related sources say that in recent times there has been a growing trend among investors to close BO accounts without paying annual maintenance charges or fees as BO. Actual figures of how many investors are finally closing BO accounts will be available at the end of July.

Sources:-CDBL

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