DSE's market monitoring performance irks regulator
Thursday, 25 November 2010
FE Report
The Securities and Exchange Commission (SEC) expressed Wednesday its dissatisfaction at the market monitoring activities of the Dhaka Stock Exchange (DSE), officials said.
During a meeting with the leaders of country's two bourses on the day, the securities regulator asked the bourses to do the needful to stop an abnormal rise in share prices of companies with poor fundamentals.
The meeting was attended, among others, by DSE President Shakil Rizvi, DSE Chief Executive Officer (CEO) Satipoti Moitra, CSE President Fakhor Uddin Ali Ahmed and CSE chief executive officer Professor Mohammed Abdullah Mamun.
"The SEC told both the stock exchanges to identify the companies whose prices have been increasing without any cogent reason," a meeting insider said.
At the meeting, the regulator strongly warned the DSE not to allow anyone other than its members to carry out brokerage business.
The SEC also said the stock exchanges would have to execute their own decisions including that on the suspension of unusual trading of shares of any company.
"Both the stock exchanges must play their due role to stop the market irregularities," SEC Executive Director Farhad Ahmed said.
According to sources, the regulator's dissatisfaction came in the backdrop of DSE's extensive dependency on the SEC decisions in the matters that should be taken by the former. It was, actually, the job of the DSE to suspend share trading of thirteen companies, they said.
The SEC halted last Tuesday the trading of shares of Sonali Aansh, Mithun Knitting, Tallu Spinning, CMC Kamal, Saffko Spinning, Miracle Industries, Standard Ceramic, Aziz Pipes, Bangladesh Autocars, United Airways, Desh Garments, Dacca Dyeing and Ambee Pharma.
"It's not the regulator's duty to suspend the trading of the companies whose share prices soar abnormally without any valid reason," Mr Farhad said.
However, a DSE leader, who did not want to be identified, admitted that it was the job of the CEO of the DSE to stop trading of shares that were rising abnormally. "But for reasons of undue pressure from influential and powerful quarters, the DSE refers the matters to the regulator for decisions", he said.
The Securities and Exchange Commission (SEC) expressed Wednesday its dissatisfaction at the market monitoring activities of the Dhaka Stock Exchange (DSE), officials said.
During a meeting with the leaders of country's two bourses on the day, the securities regulator asked the bourses to do the needful to stop an abnormal rise in share prices of companies with poor fundamentals.
The meeting was attended, among others, by DSE President Shakil Rizvi, DSE Chief Executive Officer (CEO) Satipoti Moitra, CSE President Fakhor Uddin Ali Ahmed and CSE chief executive officer Professor Mohammed Abdullah Mamun.
"The SEC told both the stock exchanges to identify the companies whose prices have been increasing without any cogent reason," a meeting insider said.
At the meeting, the regulator strongly warned the DSE not to allow anyone other than its members to carry out brokerage business.
The SEC also said the stock exchanges would have to execute their own decisions including that on the suspension of unusual trading of shares of any company.
"Both the stock exchanges must play their due role to stop the market irregularities," SEC Executive Director Farhad Ahmed said.
According to sources, the regulator's dissatisfaction came in the backdrop of DSE's extensive dependency on the SEC decisions in the matters that should be taken by the former. It was, actually, the job of the DSE to suspend share trading of thirteen companies, they said.
The SEC halted last Tuesday the trading of shares of Sonali Aansh, Mithun Knitting, Tallu Spinning, CMC Kamal, Saffko Spinning, Miracle Industries, Standard Ceramic, Aziz Pipes, Bangladesh Autocars, United Airways, Desh Garments, Dacca Dyeing and Ambee Pharma.
"It's not the regulator's duty to suspend the trading of the companies whose share prices soar abnormally without any valid reason," Mr Farhad said.
However, a DSE leader, who did not want to be identified, admitted that it was the job of the CEO of the DSE to stop trading of shares that were rising abnormally. "But for reasons of undue pressure from influential and powerful quarters, the DSE refers the matters to the regulator for decisions", he said.