At first sight one will be impressed to find that out of the total number of BO (beneficiary owner) accounts for stocks trade in Bangladesh bourses, quite over 24 per cent of the account-holders are women. Apparently, this percentage is not insignificant in the context of the country where majority women have no control over or involvement in financial management, despite many of them earning money for managing family affairs, as a mother or wife. But an insight will lay bare the reality, especially if light is shed on an enforcement hearing convened by the securities regulator to dig out a stock- price manipulation conducted through one BO (beneficiary owner) account.
The Bangladesh Securities and Exchange Commission (BSEC) probes different types of manipulation, including serial trading conducted through BO accounts to influence share price of listed securities. On completion of the investigations, the BSEC subpoenas uspects for hearings where they can defend themselves. A regulatory hearing on serial trading will help in having an idea about women's Involvement with operations through BO accounts opened under their names. A housewife, Asma Khatun (not the real name), was called to a hearing by the BSEC's relevant department. She abstained from attending the hearing twice. The third time, she appeared at the hearing with her appearance covered with veils-- and she was very embarrassed before the BSEC officials. The officials concerned came to know that her BO account actually was operated by her husband. She also was not aware of the manipulation committed by using the account that runs after her name. The BSEC officials said women might have little involvement in manipulative activities. But the majority of them becomes victim of such deceptive acts committed by their husbands or males of the families.
A male or a female can open a BO account with his or her name with a single DP (depository participant). They can open another joint account, irrespective of gender, with the same DP. As a result, three accounts are allowed in a single DP with the names of either two males or two females. They can open the same number of accounts in other DPs. According to Central Depository Bangladesh Limited (CDBL), the number of operable BO accounts stands at 1.34 million, as of March this year. Of those accounts, 24.41 per cent or 0.43 million were opened under female nomenclatures. It's all a stag party in reality, in the end. Majority of those women account- holders are just the signatories, although many of them have financial literacy and source of incomes to do the securities trade. Their husbands, or fathers, or brothers, or even relatives, opened trading accounts under their names.
While talking to this correspondent, Dr Rumana Islam, a BSEC commissioner, said the country is best in South Asia in terms of female presence on listed companies' boards and in managerial posts, too. "But women's active participation in the capital market still remains thin as they are kept aside in case of financial decisions," says the commissioner, come from the womenfolk to break a barrier after so long.
Her appointment as a commissioner at the BSEC stands out an exceptional case. The BSEC was established in 1993 as regulator of the country's capital market under the provision of Bangladesh Securities and Exchange Commission Act 1993. After 27 years of establishment, the government drew a female -- Ms Islam -- in the commission of the securities regulator for the first time in 2020.
Bangladesh Merchant Bankers Association (BMBA) got Mazeda Khatun, also chief executive officer of ICB Capital Management, as its president for the first time in 2023. Seven out of total 67 merchant banks now have female chiefs. Says Mrs. Khaun: "It's tough to carry out the responsibilities of an organisation managing own family. One of the obstacles that hinder women in achieving the apex position of an organisation is the social perspective. Many males think a certain position below the peak is enough for a woman."
She adds: It's observed that women are good money savers and they help males to overcome difficulties. In many cases it's observed that majority women are more prudent than spouses as the first ones genetically have cool brains.
A 2020 IFC-DSE study showed that around 18 percent of the listed companies' directors were women, the highest in the region. But the women's mass participation in operations of the capital market is not reflected in the figures such as the number of BO accounts. Rather, despite having no involvement in manipulations, many of them off and on are humiliated. Women also lag behind in financial decision-making due to the so-called social practices of giving them ownership in paternal assets, in a virtual paternal society suchlike this.
Investing in the equity market remains always risky. Except for equity securities, there are some risk-free securities which could see women's good participation. Keeping their insufficient participation in the capital market, the securities regulator has conducted separate training sessions for women to make them financially literate. Dhaka Stock Exchange (DSE) has also come forward and held training sessions for women. ICB Capital Management is also working to hold such courses for women to gain hands-on knowledge of the stock-in-trade on securities trade.
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