Dhaka Stock Exchange (DSE) has moved to revive stock market's stability by ensuring significant participations of institutional investors with the help of Bangladesh Bank and ministry of finance (MoF), officials said.
The decision came Sunday at a meeting held with top 30 brokerage firms who stressed on removing the existing problems, which hinders them to inject fresh funds and the market faces miserable turnover.
Meanwhile, the Securities and Exchange Commission (SEC) has also moved to arrange a series of meeting with the stakeholders in an effort to make the stable market and increase liquidity flow in the market.
"The SEC will sit with merchant bankers, asset management companies and co-ordination committee on Tuesday, Wednesday and Thursday respectively," SEC Executive Director Mohammad Saifur Rahman told the FE.
After Sunday's meeting the DSE President Md. Shakil Rizvi said the representatives of different brokerage firms have identified a number of problems and sought securities regulator's initiative to solve those in Sunday's meeting.
"The meeting was arranged to find out the reasons, which compelled the market to face miserable turnover volumes," Mr. Rizvi told the reporters.
He said DSE would sit with Bangladesh Bank and the MoF in an effort to solve the existing problems.
According to Rizvi, at the meeting the participants upheld a number of problems including the liquidity crisis due to increased interest rates charged by banks.
They said the cost of doing business run by the brokerage firms has also increased, despite the government remained the brokerage commission unchanged at 0.05 per cent.
At the meeting, they urged the Bangladesh Bank should give them more time so that single borrower's exposure limit can be adjusted step by step.
"The banks are also in alarming position due to fresh measures taken by Bangladesh Bank. That's why they have lost courage to inject fresh funds into the stock market," Mr. Rizvi said.
He said the representatives said investors' confidence was restored after the government allowed undisclosed money in the stock market although a little amount of such money is poured into the market.
"They said the meeting that investors' confidence was shrunk after the government has made the announcement of taking clarification for undisclosed money," Rizvi added.
The representatives of brokerage firms have also sought regulatory move to justify whether the asset management companies are active in the bearish market or not.
DSE president said the at an urgent board meeting they would finalise a working paper on the suggestions made by brokerage firms at Sunday's meeting.
"Then the DSE will sit with Bangladesh Bank and MoF to solve the existing problems of the stock market," Mr. Rizvi added.
DSE senior vice-president Ahsanul Islam Titu said they would collect more information on the existing problems in a move to complete the working paper, which will be placed before Bangladesh Bank and the MoF.
"The main objective of Sunday's meeting is to ensure significant participations of institutional investors for restoring market's stability," Mr. Titu said.
At Sunday's meeting, Bangladesh Association of Publicly Listed Companies (BAPLC) President Salman F Rahman and ICB Managing Director Md. Fayekuzzaman were also present.
The decision came Sunday at a meeting held with top 30 brokerage firms who stressed on removing the existing problems, which hinders them to inject fresh funds and the market faces miserable turnover.
Meanwhile, the Securities and Exchange Commission (SEC) has also moved to arrange a series of meeting with the stakeholders in an effort to make the stable market and increase liquidity flow in the market.
"The SEC will sit with merchant bankers, asset management companies and co-ordination committee on Tuesday, Wednesday and Thursday respectively," SEC Executive Director Mohammad Saifur Rahman told the FE.
After Sunday's meeting the DSE President Md. Shakil Rizvi said the representatives of different brokerage firms have identified a number of problems and sought securities regulator's initiative to solve those in Sunday's meeting.
"The meeting was arranged to find out the reasons, which compelled the market to face miserable turnover volumes," Mr. Rizvi told the reporters.
He said DSE would sit with Bangladesh Bank and the MoF in an effort to solve the existing problems.
According to Rizvi, at the meeting the participants upheld a number of problems including the liquidity crisis due to increased interest rates charged by banks.
They said the cost of doing business run by the brokerage firms has also increased, despite the government remained the brokerage commission unchanged at 0.05 per cent.
At the meeting, they urged the Bangladesh Bank should give them more time so that single borrower's exposure limit can be adjusted step by step.
"The banks are also in alarming position due to fresh measures taken by Bangladesh Bank. That's why they have lost courage to inject fresh funds into the stock market," Mr. Rizvi said.
He said the representatives said investors' confidence was restored after the government allowed undisclosed money in the stock market although a little amount of such money is poured into the market.
"They said the meeting that investors' confidence was shrunk after the government has made the announcement of taking clarification for undisclosed money," Rizvi added.
The representatives of brokerage firms have also sought regulatory move to justify whether the asset management companies are active in the bearish market or not.
DSE president said the at an urgent board meeting they would finalise a working paper on the suggestions made by brokerage firms at Sunday's meeting.
"Then the DSE will sit with Bangladesh Bank and MoF to solve the existing problems of the stock market," Mr. Rizvi added.
DSE senior vice-president Ahsanul Islam Titu said they would collect more information on the existing problems in a move to complete the working paper, which will be placed before Bangladesh Bank and the MoF.
"The main objective of Sunday's meeting is to ensure significant participations of institutional investors for restoring market's stability," Mr. Titu said.
At Sunday's meeting, Bangladesh Association of Publicly Listed Companies (BAPLC) President Salman F Rahman and ICB Managing Director Md. Fayekuzzaman were also present.
Source: FE
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