SEC asks merchant banks to play due role
FE Report | Friday, 25 July 2008
The securities regulator Thursday asked the merchant banks and brokerage houses to play their due role to make the market stable.
"The merchant banks and brokerage houses should advise the investors on the fundamentals of the stocks so that the market does not behave abnormally," a joint meeting held in the SEC was told on the day.
The regulator, bourses and merchant banks also agreed for arranging separate programme twice in a month for creating awareness among the investors about the stock market to help choose the fundamental-based stocks.
The decision came in a meeting among the Securities and Exchange Commission (SEC), Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE) and merchant banks held at the commission on Thursday.
"There was a consensus in the meeting that the merchant banks and brokerage houses will hold awareness creating programme among the investors twice in a month as most of our investors are inexperienced and do not know how to choose fundamental based stocks," Farhad Ahmed, executive director of the SEC told reporters after the meeting.
The representatives from brokerage houses and merchant banks have agreed to arrange separate programme for imparting knowledge about fundamentals of a company among the investors, he added.
The meeting opined that the market has no abnormality and the recent price correction was a common phenomenon of the capital market.
It also decided to set up a research cell for analyzing the company's fundamental as there are no research based investment in the country though this practice exists in the neighbouring countries like India, sources said adding the outcome of the research will disseminate among the investors to help choice good stocks.
"In our country, there is no research cell about the capital market but it is required as the size of the market is expanding day by day," said the source.
With SEC chairman Faruq Ahmed Siddiqi in the chair, the meeting was also attended, among others, by DSE senior vice president Saiful Islam, CSE president Nasiruddin Ahmed Chowdhury, CSE Vice president Al Maruf Khan, DSE chief executive officer Salahuddin Ahmad Khan and representatives from leading merchant banks.
"The merchant banks and brokerage houses should advise the investors on the fundamentals of the stocks so that the market does not behave abnormally," a joint meeting held in the SEC was told on the day.
The regulator, bourses and merchant banks also agreed for arranging separate programme twice in a month for creating awareness among the investors about the stock market to help choose the fundamental-based stocks.
The decision came in a meeting among the Securities and Exchange Commission (SEC), Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE) and merchant banks held at the commission on Thursday.
"There was a consensus in the meeting that the merchant banks and brokerage houses will hold awareness creating programme among the investors twice in a month as most of our investors are inexperienced and do not know how to choose fundamental based stocks," Farhad Ahmed, executive director of the SEC told reporters after the meeting.
The representatives from brokerage houses and merchant banks have agreed to arrange separate programme for imparting knowledge about fundamentals of a company among the investors, he added.
The meeting opined that the market has no abnormality and the recent price correction was a common phenomenon of the capital market.
It also decided to set up a research cell for analyzing the company's fundamental as there are no research based investment in the country though this practice exists in the neighbouring countries like India, sources said adding the outcome of the research will disseminate among the investors to help choice good stocks.
"In our country, there is no research cell about the capital market but it is required as the size of the market is expanding day by day," said the source.
With SEC chairman Faruq Ahmed Siddiqi in the chair, the meeting was also attended, among others, by DSE senior vice president Saiful Islam, CSE president Nasiruddin Ahmed Chowdhury, CSE Vice president Al Maruf Khan, DSE chief executive officer Salahuddin Ahmad Khan and representatives from leading merchant banks.