Investors urge PM to reshuffle BSEC 

Staff Correspondent | Published: 00:00, Oct 30,2019


Bangladesh Capital Market Investors Association president Mizanur Rashid Chowdhury speaks at a press conference at the National Press Club in Dhaka on Tuesday. BCMIA general secretary Abdur Razzaque was also present among others. — New Age photo

A section of stock market investors on Tuesday sought the prime minister Sheikh Hasina’s intervention regarding removal of Bangladesh Securities

and Exchange Commission’s commissioners and reconstitution of the commission to revive the investors’ confidence in the regulator and the country’s share market.

The investors under the banner of Bangladesh Capital Market Investors Association made the demand at a press conference held at the National Press Club in Dhaka.

They held the press conference after they were recently barred by Motijheel police from staging demonstration against share price plunge in front of the DSE building.

The investors said that relentless fall in the share prices made them paupers.

The DSEX lost 1,280 points in last nine months with the bourse’s market capitalisation declining by more than Tk 66,400 crore.

BCMIA president Mizanur Rashid Chowdhury alleged that the BSEC commissioners including its chairman M Khairul Hossain failed to perform duty properly in last nine months.

He demanded removal of the BSEC commissioners including the chairman.

Mizanur said that most of the companies approved by the current commission sank below their issue prices and face value, hurting the investors.

Production of many companies including C&A Textile, Appollo Isphat, Khulna Printing and Packaging and Emerald Oil remained suspended, he claimed.

Mizanur also said, ‘The government should conduct drive against corruptions at BSEC, stock exchanges, Investment Corporation of Bangladesh and issue managers as corruptions of some of their officials have brought the capital market to the edge.’

The current commission approved fundamentally weak initial public offerings, right shares and placement shares amid bribery, corruptions and irregularities, and looted thousands of crores of taka, Mizanur alleged.

He urged the government to introduce buy-back rules to force the companies, whose share prices fall below face value, to buy back shares from investors.

Compliance with mandatory 2 per cent (individually) and 30 per cent (jointly) shareholding rules by the companies’ sponsor-directors must be ensured through taking necessary actions, he said.

The companies which declare no-dividend despite making profits have to be brought to book, he said.

Profitable multinational companies must have to be listed on the country’s stock exchanges and mutual funds should be made active for the interest of the capital market, Mizanur said.

He suggested that the BSEC approve an IPO seeking company to offload maximum 40 per cent of its paid up capital and said that placement shares could not be included in the company’s paid up capital.

He sought framing of investors’ security law, stoppage of forced sales and waiver of the payment of interest against margin loans.

BCMIA general secretary Abdur Razzaque was also present, among others.

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