New Age-February 01'2012 Wednesday
The Securities and Exchange Commission after an emergency meeting with market stakeholders said that the capital market crisis cannot be resolved overnight while experts blasted the commission for making the same statements time and again.
At an emergency meeting with the SEC, the market stakeholders identified a number of shortcomings including soaring bank
rates, growing rumours, liquidity crisis, and policy mismatch but failed to come up with any immediate remedy.
Market experts and analyst blasted the role of the SEC and the bourses saying that the regulators and the self-regulators should tighten the surveillance and monitoring rather coming up with same statements over and over again.
‘We are trying our best and hoping for a stabilised and strong capital market,’ SEC chairman M Khairul Hossain told reporters after the meeting.
‘We are working together with different stakeholders and hope for a positive outcome,’ he said.
‘We are trying our best, but the problem cannot be resolved overnight,’ SEC executive director Saifur Rahman told reporters.
Mohammod Hafiz, president of Bangladesh Merchant Bankers Association said, ‘We are trying our best as we have genuine interest in the market but the problem cannot be solved overnight.’
ICB managing director Md. Fayekuzzaman said, ‘We had a very fruitful discussion but cannot tell you all of those at this moment.’
DSE and CSE presidents after the meeting said that a number of issues were raised at the meeting and different parties explained the problems form different perspectives.
The SEC had called the meeting on Monday as the key indices of the Dhaka and the Chittagogn stock exchanges went on a free fall.
The DGEN gained 2.46 per cent, or 103.04 points, on Monday in late trading following the news that the SEC would meet the market stakeholders to address the ongoing crisis.
But the SEC and the market stakeholders failed to come up with any concrete measures to address the current market situation and the DGEN lost 3.08 per cent, or 132.14 points on Tuesday.
Market experts and analysts, however, were critical of Tuesday’s meeting.
‘The regulators should focus on surveillance and monitoring to find out the unpredictable market behavior, otherwise such meetings with no result strike the market negatively,’ said Mahmood Osman Imam, a professor of finance of Dhaka University.
He said that the market behavior in last few weeks proves that a vested quarter is active in the market, otherwise there is no rational explanation for such massive fall of prices.
‘The SEC, DSE and CSE have access to the information and can easily find out if there is anyone beneficiary from such fall of share prices.’
Yawer Sayeed, managing director of AIMS Bangladesh Ltd, told New Age, ‘Such meetings are routine work and there is no point of over hyping it.’
He said, ’Such meetings should be held closed
doors and if there is no important information to disseminate then no point of making such meeting
public.’
The capital market witnessed yet another crash in January this year when the DSE index lost 1,198 points following sudden and contradictory policy changes by different government agencies.
The Securities and Exchange Commission after an emergency meeting with market stakeholders said that the capital market crisis cannot be resolved overnight while experts blasted the commission for making the same statements time and again.
At an emergency meeting with the SEC, the market stakeholders identified a number of shortcomings including soaring bank
rates, growing rumours, liquidity crisis, and policy mismatch but failed to come up with any immediate remedy.
Market experts and analyst blasted the role of the SEC and the bourses saying that the regulators and the self-regulators should tighten the surveillance and monitoring rather coming up with same statements over and over again.
‘We are trying our best and hoping for a stabilised and strong capital market,’ SEC chairman M Khairul Hossain told reporters after the meeting.
‘We are working together with different stakeholders and hope for a positive outcome,’ he said.
‘We are trying our best, but the problem cannot be resolved overnight,’ SEC executive director Saifur Rahman told reporters.
Mohammod Hafiz, president of Bangladesh Merchant Bankers Association said, ‘We are trying our best as we have genuine interest in the market but the problem cannot be solved overnight.’
ICB managing director Md. Fayekuzzaman said, ‘We had a very fruitful discussion but cannot tell you all of those at this moment.’
DSE and CSE presidents after the meeting said that a number of issues were raised at the meeting and different parties explained the problems form different perspectives.
The SEC had called the meeting on Monday as the key indices of the Dhaka and the Chittagogn stock exchanges went on a free fall.
The DGEN gained 2.46 per cent, or 103.04 points, on Monday in late trading following the news that the SEC would meet the market stakeholders to address the ongoing crisis.
But the SEC and the market stakeholders failed to come up with any concrete measures to address the current market situation and the DGEN lost 3.08 per cent, or 132.14 points on Tuesday.
Market experts and analysts, however, were critical of Tuesday’s meeting.
‘The regulators should focus on surveillance and monitoring to find out the unpredictable market behavior, otherwise such meetings with no result strike the market negatively,’ said Mahmood Osman Imam, a professor of finance of Dhaka University.
He said that the market behavior in last few weeks proves that a vested quarter is active in the market, otherwise there is no rational explanation for such massive fall of prices.
‘The SEC, DSE and CSE have access to the information and can easily find out if there is anyone beneficiary from such fall of share prices.’
Yawer Sayeed, managing director of AIMS Bangladesh Ltd, told New Age, ‘Such meetings are routine work and there is no point of over hyping it.’
He said, ’Such meetings should be held closed
doors and if there is no important information to disseminate then no point of making such meeting
public.’
The capital market witnessed yet another crash in January this year when the DSE index lost 1,198 points following sudden and contradictory policy changes by different government agencies.
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