Knowledge-based investment imperative to reduce risk: SEC chairman
FE Report | Friday, 29 August 2008
Securities and Exchange Commission (SEC) chairman Faruq Ahmad Siddiqi Thursday said knowledge-based investment is imperative in order to reduce the risk and bring stability in the capital market as well.
He was speaking as chief guest at an Investors' Awareness Programme jointly launched by IDLC Finance Limited and its subsidiary IDLC Securities Limited in a city hotel.
"Pick up scrip after analysing the company's financial condition but don't take decision based on rumour and by listening from others," SEC chief said adding the capital market is always considered risky but those investors who have ability how to choose stocks must gain.
Urging brokerage houses and merchant bankers to arrange such type of awareness programme frequently, he said that awareness creating programme will help the investors enrich knowledge about the market and learn how and when stocks will be bought and sold.
Faruq said in the last two years the country's capital market has experienced tremendous growth as the market capitalisation of the prime bourse rose to $14 billion from a mere $4 billion.
He called upon the private entrepreneurs to raise capital from the stock markets in order to help industrialise the country.
President of the Dhaka Stock Exchange (DSE) Abdul Haque, former DSE president Imtiyaz Husain, IDLC Finance chairman Anwarul Huq, its managing director Anis A Khan and deputy managing director Yongbok Jo were present at the programme.
Economist Abu Ahmed and IDLC Finance general manager Arif Khan presented two separate keynote papers at the programme.
Anwarul Huq, IDLC Finance chairman sought help from the SEC to launch asset management company so that it can help widen the depth of the market.
Anis A Khan said such awareness programme will create a positive impact in the market through enriching investors' knowledge.
He unveiled IDLC's plan of holding a series of similar awareness programmes in the coming months.
Economist Abu Ahmed in his keynote paper said, before investing on any scrip, the investors should know its market shares, mode of doing business and above all the track record of the sponsor directors of the company concerned.
He advised the investors not to buy the over-valued stocks.
"The investors who come in the market with long term investment goal perform better than the investors with short term investment goal," he said.
He was speaking as chief guest at an Investors' Awareness Programme jointly launched by IDLC Finance Limited and its subsidiary IDLC Securities Limited in a city hotel.
"Pick up scrip after analysing the company's financial condition but don't take decision based on rumour and by listening from others," SEC chief said adding the capital market is always considered risky but those investors who have ability how to choose stocks must gain.
Urging brokerage houses and merchant bankers to arrange such type of awareness programme frequently, he said that awareness creating programme will help the investors enrich knowledge about the market and learn how and when stocks will be bought and sold.
Faruq said in the last two years the country's capital market has experienced tremendous growth as the market capitalisation of the prime bourse rose to $14 billion from a mere $4 billion.
He called upon the private entrepreneurs to raise capital from the stock markets in order to help industrialise the country.
President of the Dhaka Stock Exchange (DSE) Abdul Haque, former DSE president Imtiyaz Husain, IDLC Finance chairman Anwarul Huq, its managing director Anis A Khan and deputy managing director Yongbok Jo were present at the programme.
Economist Abu Ahmed and IDLC Finance general manager Arif Khan presented two separate keynote papers at the programme.
Anwarul Huq, IDLC Finance chairman sought help from the SEC to launch asset management company so that it can help widen the depth of the market.
Anis A Khan said such awareness programme will create a positive impact in the market through enriching investors' knowledge.
He unveiled IDLC's plan of holding a series of similar awareness programmes in the coming months.
Economist Abu Ahmed in his keynote paper said, before investing on any scrip, the investors should know its market shares, mode of doing business and above all the track record of the sponsor directors of the company concerned.
He advised the investors not to buy the over-valued stocks.
"The investors who come in the market with long term investment goal perform better than the investors with short term investment goal," he said.