A commissioner of the securities regulator smells a rat in the recent 'demonstrations' by some investors following a capital market fall.
Prof Helal Uddin Nizami said the spearheads of the protests, staged by 10-20 investors, have actually 'no contribution' to the stock market.
"Those investors, enthused by a quarter, took to streets illogically. We can't leave the market's fate in the hands of a few investors," he added.
Prof Nizami of the Bangladesh Securities and Exchange (BSEC) made the observations as the chief guest at a programme held at a city hotel on Wednesday.
Online news portal arthosuchak.com hosted the programme.
Dhaka Stock Exchange former president Shakil Rizvi, acting managing director Abul Matin Patwary, Chattogram Stock Exchange director Sayedur Rahman and Runner Group chairman Hafizur Rahman Khan were the special guests.
In his speech, Prof Nizami said the securities regulator does not invite anyone to the market which has investment 'risks'.
"Those who don't have sufficient knowledge shouldn't come to the capital market," he maintained.
Hinting at DSE, the BSEC commissioner doubted the capability of the authorities in making the bourse time-befitting.
He also questioned the role of the stakeholders in enhancing the depth of the share market.
"Where is the role of the stakeholders, including issue managers and under-writers?" queried Prof Nizami.
He said BSEC is thinking of establishing a new stock exchange as the management of this exchange is not capable of fulfilling the demand of the country's growing economy.
Prof Nizami said the securities regulator is not responsible for some issues which affected the capital market on many occasions.
"BSEC has no role behind the (liquidity) crises created in the operations of banks and the recent fall in share prices of Grameenphone," he cited.
"We also have no responsibility for the liquidation of Peoples Leasing. The market faces a negative impact of such an incident. But demonstrations were aimed at the securities regulator."
Prof Nizami also criticised some media reports published without depicting actual reasons behind the market fall.
"The large fall in the market cap doesn't mean that a substantial amount of money is wiped out of the market," he argued.
The BSEC commissioner said the securities regulator does not invite anyone to apply for IPO (initial public offering) shares of a company whose public subscriptions hit around 40 times high.
On debut trading, a particular company's 10-taka shares are traded at Tk 40 and after two or six months, demos are staged following a fall in its share prices."
"Who have told you to apply for the company's IPO shares?" asked Nizami, adding that only the wary investors should come to the market.
Ziaur Rahman, editor of the online news portal arthosuchak.com, also spoke at the programme.
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