Thrust on greater coordination between BSEC, central bank

FE Report
Top 30 member brokers of Dhaka Stock Exchange (DSE) have stressed the need for greater coordination between central bank and the securities regulator in case of taking capital market related decisions, officials said.
The opinion of the top brokers, selected in terms of turnover observed in last three months, came Wednesday at a meeting chaired by the DSE Chairman Justice Siddiqur Mia.
 "The brokers said the central bank definitely takes the decisions for the betterment of banks and capital market. According to them, the way of taking any capital market related decision will create panic in the market unless it is taken having a prior discussion with the securities regulator," a DSE director told the FE.
The observation of the DSE directors came following a recent directive which was issued by the Bangladesh Bank (BB) seeking information on day to day basis on the investments made through the banks' subsidiaries.
The BB directive was issued without conducting any prior discussion with the Bangladesh Securities and Exchange Commission (BSEC) although the ministry of finance (MoF) earlier asked the stakeholders to discuss with the BSEC while taking any capital market related decision.
The central bank, however, later changed it directive and asked for submitting the information on the subsidiaries' investment on weekly basis.
On March 25 last at a seminar held at the University of Dhaka, the former advisor to the caretaker government and the ex-chairman of the BSEC Dr. AB Mirza Azizul Islam, the former governor of the central bank Dr. Salehuddin Ahmed and ex-BSEC Chairman Faruq Ahmad Siddiqi seriously blamed the lack of coordination between the BB and the BSEC.  
When asked, the top BSEC officials said they have discussed some possible reasons allegedly responsible for the recent volatile situation of the capital market.
According to them, the capital market has also failed to get due supports from some institutions whose one of the responsibilities is to support the market.
At Wednesday's meeting, the DSE brokers have also talked on as to how the shares of brokerage firms can be offloaded in the capital market.
 "After the completion of demutualisation process, the brokerage firms have no bar to offload their shares," said the DSE director.
According to him, the DSE board told the member brokers that their proposals would be discussed with the securities regulator.