Capital market stakeholders should play their due role for development of the country's capital market, M Khairul Hossain, chairman of Bangladesh Securities and Exchange Commission, said on Monday.
"Merchant bankers, issue managers, auditors, stockbrokers and investors should perform diligently and professionally for protecting investors' interests," said Mr Hossain.
Referring to the approval process of initial public offering (IPO), Mr Hossain said, " In many cases we cannot verify all documents of IPO seeking companies and we have to depend on issue managers' and auditors' reports for approval of IPOs".
After listing with the bourses, many companies' earnings per share and net asset value decline surprisingly in contrast with their earlier information placed in the prospectuses, he noted.
The BSEC chairman said this while addressing a workshop on "Financial Literacy Awareness Programee" for journalists held on the day at the Bangladesh Securities and Exchange Commission (BSEC) seminar room in the city.
The Capital Market Journalists Forum (CMJF) and the BSEC jointly organised the workshop.
About the book-building system, he said, institutional investors are not properly defining cut-off price of ordinary shares.
"There is a huge gap between the highest and lowest prices proposed by the institutional investors."
He said some eligible institutional investors quoted higher IPO cut-off price in connivance with other institutional investors in book building method.
Mr Hossain noted that the securities regulator is taking corrective measures on a case-to-case basis to stop misuse and the process will continue.
Recently at a seminar, Mr Hossain also made harsh remarks on the price manipulation by alleged institutional investors. He said the book building system would be suspended or stopped if needed for the sake of capital market.
He also urged the journalists to perform their responsibility properly to protect the investors' interest.
Mr Hossain said a vested group tried to hurt the capital market by spreading remours and investors should be aware of it.
"Some people are active to down the market, especially ahead of national election and we are aware of it," said Mr Hossain.
The BSEC chairman said: "BSEC is working relentlessly to protect the interests of investors."
He said capital market investors will also have to protect their investment themselves also and there is no alternative for financial literacy to protect their investment.
The securities regulator is also working for nationwide 'financial literacy' programee in an effort to ensure investors' protection by reducing speculation, he said.
He said the country's capital market can be a source of long-term financing for infrastructure and industrialisation adding that there is a correlation between the development of the economy and capital market.
The BSEC is also working for development of the bond market, small-cap based separate trading board and venture capital, he added.
He also said the BSEC will introduce best reporting award for capital market journalists from next year.
BSEC director Rezaul Karim presented a keynote paper where 90 journalists working in the different media took part in the workshop. President of CMJF Hasan Imam Rubel also spoke in the workshop.
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