Market monitors to come under stricter scrutiny: DSE chief

FE REPORT | Published: January 18, 2025 21:52:52

The market surveillance unit of the Dhaka Stock Exchange (DSE) will be made accountable to its board from now on, said the chief of the prime bourse.
Until now, the unit was only answerable to the securities regulator.
The strategic move has been made to free the market of manipulation, said DSE Chairman Mominul Islam, while speaking at the "CMJF Talk," organised by the Capital Market Journalists' Forum (CMJF) on Saturday.
Mr Islam said the bourse was striving to remove barriers in taking actions against market manipulation.
The DSE has its regulatory affairs division to monitor the market to see if there is any trading activity in real time to manipulate stocks.
This organ was only accountable to the Bangladesh Securities and Exchange Commission (BSEC). Recently, the DSE has decided to bring the operations of the wing under its scrutiny.
"We realized that we should have an internal mechanism to monitor the function of the regulatory affairs division, which will, from now on, be done by the internal audit department," said Mr Islam.
The audit and risk management committee will prepare reports on the works of the regulatory affairs division and will submit to the DSE directors.
The "CMJF Talk" was chaired by CMJF President SM Golam Samdani, with General Secretary Abu Ali as moderator.
Mr. Mominul Islam also said Bangladesh's stock market is expected to recover by June.
"We believe that by June, investors will witness substantial improvements in the market, leading to a resurgence of faith in the system."
The DSE chairman highlighted that a task force has been addressing long-standing irregularities and corruption in the market. While all reforms may not be completed by June, the progress made will significantly boost investor confidence.
He emphasized that the visible changes will send a positive message to stakeholders, reinforcing the perception that misconduct will no longer go unpunished.
The DSE Chairman outlined both long-term and short-term strategies for revitalizing the stock market.
He reinstated his commitment to building a trustworthy and stable market environment.
"By addressing systemic inefficiencies and regaining trust, we aim to create a sustainable and prosperous stock market," he concluded.
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