MoF forms monitoring body for capital market
FE Report | Thursday, 3 March 2011
FE Report
The Ministry of Finance (MoF) Wednesday formed an eight-member implementation committee to oversee the activities of the capital market and help implement the decisions of the government to this effect. The move came as part of the fresh government measures to check manipulation in the country's two stock exchanges and help stabilise the capital market, following the recent crash in share prices, said a top official in the MoF. The prime objective of the committee will be to monitor and review implementation of the decisions taken at the meetings of the Advisory Committee on Capital Market, the official added. The committee includes representatives from the central bank, Investment Corporation of Bangladesh (ICB), Securities and Exchange Commission (SEC), Insurance Development and Regulatory Authority, Association of Bankers, Registrar of Joint Stock Companies and Firms, and Merchant Bankers' Association. A deputy secretary of Banking and Financial Institution Division under the MoF has been made the convener of the committee, according to an office order issued by the ministry. The implementation committee, which will hold its meeting every month, will report to the finance minister on the overall development and implementation status of the decisions, the order added. "The committee has been formed, as both the Bangladesh Bank (BB) and the SEC have endorsed its formation," a top MoF official said. "The committee will monitor the liquidity crisis that is affecting the capital market, and also help execute the MoF forms decisions of the advisory committee on the capital market," he added. SEC Chairman Ziaul Haque Khondker is the chief of the Advisory Committee on Capital Market. However, many decisions, taken by the committee, have not been implemented properly or timely, affecting the overall scenario of the bourses and allowing speculators to manipulate the system, a high official said. The central bank came up with the idea of setting up the committee to review the market, amid persistent volatility in trading, the official said, adding that the ministry has taken the move in line with the BB's suggestion. The stock market has been experiencing a free-fall since December 05 last year, when it hit the record high of 8918.51.
The Ministry of Finance (MoF) Wednesday formed an eight-member implementation committee to oversee the activities of the capital market and help implement the decisions of the government to this effect. The move came as part of the fresh government measures to check manipulation in the country's two stock exchanges and help stabilise the capital market, following the recent crash in share prices, said a top official in the MoF. The prime objective of the committee will be to monitor and review implementation of the decisions taken at the meetings of the Advisory Committee on Capital Market, the official added. The committee includes representatives from the central bank, Investment Corporation of Bangladesh (ICB), Securities and Exchange Commission (SEC), Insurance Development and Regulatory Authority, Association of Bankers, Registrar of Joint Stock Companies and Firms, and Merchant Bankers' Association. A deputy secretary of Banking and Financial Institution Division under the MoF has been made the convener of the committee, according to an office order issued by the ministry. The implementation committee, which will hold its meeting every month, will report to the finance minister on the overall development and implementation status of the decisions, the order added. "The committee has been formed, as both the Bangladesh Bank (BB) and the SEC have endorsed its formation," a top MoF official said. "The committee will monitor the liquidity crisis that is affecting the capital market, and also help execute the MoF forms decisions of the advisory committee on the capital market," he added. SEC Chairman Ziaul Haque Khondker is the chief of the Advisory Committee on Capital Market. However, many decisions, taken by the committee, have not been implemented properly or timely, affecting the overall scenario of the bourses and allowing speculators to manipulate the system, a high official said. The central bank came up with the idea of setting up the committee to review the market, amid persistent volatility in trading, the official said, adding that the ministry has taken the move in line with the BB's suggestion. The stock market has been experiencing a free-fall since December 05 last year, when it hit the record high of 8918.51.