SEC to work out plan to bring stability in stock market
Tuesday, 11 November 2008
FE Report
The Securities and Exchange Commission (SEC) will work out a plan to bring stability in the stock market and restore investors' confidence affected badly by a lingering bearish spell.
"The commission will take up short, medium and long term plans to bring stability in the market after discussion with merchant banks, scheduled for tomorrow (Tuesday)," Farhad Ahmed, executive director of the SEC, told reporters after a meeting with Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) Monday.
SEC Chairman Faruq Ahmad Siddiqi chaired the meeting.
"The details about the work-plan will be disclosed after the meeting with the merchant banks," he said adding if it is needed, the SEC might discuss the matter with the central bank.
In response to a question that some merchant banks have allegedly forced their clients to sell stocks for loan adjustment, Farhad said, "The merchant banks have denied the allegation at a recent meeting with the SEC. However, action will be taken against any merchant bank in line with securities rules if any evidence of wrong-doing is found."
"No inactive merchant banks will be allowed to stay. On the other hand, more licences will be issued to the eligible applicants to increase fund flow to the market," he added.
The commission has also plan to monitor the activities of the merchant banks, he said without giving details.
About the outcome of the meeting with DSE and CSE, the spokesman of the commission said, "We have an elaborate discussion on the present market situation and looked into possible reasons behind the falling market trend."
He said unnecessary panic and psychological pressure have led to the market downturn.
"The investors' confidence has been eroded somewhat because of the persistent downturn of the market," he said.
There is nothing to be panicked as the country's economic fundamentals are in good shape despite the global financial crisis, he said.
The Securities and Exchange Commission (SEC) will work out a plan to bring stability in the stock market and restore investors' confidence affected badly by a lingering bearish spell.
"The commission will take up short, medium and long term plans to bring stability in the market after discussion with merchant banks, scheduled for tomorrow (Tuesday)," Farhad Ahmed, executive director of the SEC, told reporters after a meeting with Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) Monday.
SEC Chairman Faruq Ahmad Siddiqi chaired the meeting.
"The details about the work-plan will be disclosed after the meeting with the merchant banks," he said adding if it is needed, the SEC might discuss the matter with the central bank.
In response to a question that some merchant banks have allegedly forced their clients to sell stocks for loan adjustment, Farhad said, "The merchant banks have denied the allegation at a recent meeting with the SEC. However, action will be taken against any merchant bank in line with securities rules if any evidence of wrong-doing is found."
"No inactive merchant banks will be allowed to stay. On the other hand, more licences will be issued to the eligible applicants to increase fund flow to the market," he added.
The commission has also plan to monitor the activities of the merchant banks, he said without giving details.
About the outcome of the meeting with DSE and CSE, the spokesman of the commission said, "We have an elaborate discussion on the present market situation and looked into possible reasons behind the falling market trend."
He said unnecessary panic and psychological pressure have led to the market downturn.
"The investors' confidence has been eroded somewhat because of the persistent downturn of the market," he said.
There is nothing to be panicked as the country's economic fundamentals are in good shape despite the global financial crisis, he said.