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Search date: 17-01-2018 Return to current date: Click here

Brokers, merchant bankers for proper coordination

FE Report | January 17, 2018 00:00:00

Stock brokers and merchant bankers have sought proper coordination among the regulatory bodies to keep the capital market stable.

They said the Bangladesh Bank (BB) and the securities regulator should maintain coordination while taking any decision that might affect the capital market.

In this regard, they will meet to submit a set of recommendations to the BB and the ministry of finance.

The decision of seeking coordination was taken on Tuesday at meeting held at the office of Dhaka Stock Exchange (DSE).

The representatives of Bangladesh Merchant Bankers Association (BMBA) and DSE Brokers Association (DBA) attended the meeting.

Their move came following continuous sharp correction in broad index and turnover value observed recently on both the stock exchanges.

The DSE broad index DSEX declined 186 points since January 1 this year, while the key index shed 121 points on Sunday and Monday.

After the Tuesday's meeting, the DBA President Mustaque Ahmed Sadeque said at the meeting they discussed some reasons responsible for recent continuous fall.

He said the market recently observed a selling pressure as the Investment Corporation of Bangladesh (ICB) adjusted its single party exposure.

"The ICB was compelled to adjust the exposure, although the amount of over exposure was not enough. Secondly, the banks presently are in an apprehension of increasing advance deposit ratio (ADR) by the central bank," Sadeque said.

He said funds might be shifted to banking sector from the capital market if ADR is increased.

"Under such a situation, we have decided to submit a set of recommendation to the ministry of finance, BB and the securities regulator so that the BB discusses with others while taking any decision," Sadeque said.

BMBA president Mohammed Nasir Uddin Chowdhury, BMBA secretary general Khairul Bashar Abu Taher Mohammad, ICB managing director Kazi Sanaul Hoq, among others, were present at Tuesday's meeting.

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