FE Report
The securities regulator Thursday allayed jittery investors, vowing a raft of new laws and coordinated efforts with the central bank, ministry of finance and national board of revenue (NBR) to help restore stability in the stock market.
A spokesman of the Securities and Exchange Commission (SEC) made the assurance amid signs that the regulator is increasingly concerned over the plummeting stock prices in the two bourses.
"The SEC hopes that the investors will soon see the results of our coordinated efforts," SEC executive director Mohammad Saifur Rahman told the reporters at a press briefing."We have taken the moves in consultation with all including the central bank, the finance ministry, the national board of revenue, two stock exchanges and merchant banks," Rahman said.
"The SEC hopes that the investors will soon see the results of our coordinated efforts," SEC executive director Mohammad Saifur Rahman told the reporters at a press briefing."We have taken the moves in consultation with all including the central bank, the finance ministry, the national board of revenue, two stock exchanges and merchant banks," Rahman said.
He made the announcement at the close of the market Thursday. The rumours of a fresh SEC move to steady the market boosted market sentiment earlier in the day, sending the benchmark index to two per cent high. Rahman said the SEC has been monitoring the market situation "very closely" and has stepped up efforts to make sure the Dhaka and Chittagong bourses snap their six-month sluggish run.
"The ministry of finance, Bangladesh Bank, NBR, both the stock exchanges, merchant bankers and other stakeholders are continuing discussions to overcome the present crisis," Rahman said.
He said the SEC would come up with fresh market-friendly steps including appropriate enforcement of the existing laws, rules and amendment of some other laws in its effort to boost the market.
He said the regulator has already undertaken new initiatives to reform some clauses of the Securities and Exchange Ordinance, 1969.
"The ministry of finance, Bangladesh Bank, NBR, both the stock exchanges, merchant bankers and other stakeholders are continuing discussions to overcome the present crisis," Rahman said.
He said the SEC would come up with fresh market-friendly steps including appropriate enforcement of the existing laws, rules and amendment of some other laws in its effort to boost the market.
He said the regulator has already undertaken new initiatives to reform some clauses of the Securities and Exchange Ordinance, 1969.
He invited proposals from the investors on how to ride out the crisis. The investors have been asked to submit their proposals to the SEC office at Motijheel.
"We think their suggestions will be helpful and can go a long way to stabilise the market," he said.
SEC Chairman Dr. M Khairul Hossain, meanwhile, told reporters that the commission would enact new laws and rules to prevent any future stock scam.
SEC Chairman Dr. M Khairul Hossain, meanwhile, told reporters that the commission would enact new laws and rules to prevent any future stock scam.
"We will formulate separate laws for bonus shares, preference shares and rights shares," Mr. Hossain told representatives of Bangladesh Capital Market Reporters Association (BCMRA) when they met him at his office.
"Other amendments will be done after the completion of restructuring of the SEC," he said, adding that the regulator was holding a series of meetings with stakeholders to come up with right remedies.
He said the regulator would get one more member after Prime Minister Sheikh Hasina returns home next week.
He said the regulator would get one more member after Prime Minister Sheikh Hasina returns home next week.
"The appointment of the new member will end quorum crisis at the commission. After that, the commission will sit regularly to make new decisions," Hossain said. Presently, the SEC has two policy-makers including Hossain and a member. The regulator needs three policy-makers including its chairman and two members to ratify decisions.
Mr. Hossain exposed the hope the upcoming budget would be market-friendly, noting that the government is keen to keep the market stable. Before the press briefing, two groups of investors submitted memoranda containing sets of recommendations to the SEC chairman.
The investors have demanded the central bank reduce mandatory reserve ratios for banks so that they can plough in more fund in the market.
The investors have demanded the central bank reduce mandatory reserve ratios for banks so that they can plough in more fund in the market.
They asked the regulator to allow further exposure of banks to the market, demanded punishment of the culprits behind the stock debacle and fiscal provision for whitening 'undisclosed' money for investment in stock market.
Source: Financial Express (27 May 2011).
