(১৩৩১) DSE:: make the investors in capital market aware

Saturday, May 28, 2011 Unknown
Prime minister's finance advisor Mashiur Rahman has suggested the brokerage houses to make the investors in capital market aware of the risk factors.

Referring to the Dec-Jan stocks debacle, he said at a city seminar on Saturday morning the brokerage houses had not made the investors aware of the risks while opening their branches at different places of the country.

"The recent stocks debacle occurred because of this," he told the seminar, entitled "Reforms to Bangladesh Capital Market: Demand and Supply Side Constraints'.

The capital market witnessed unusual fall in share prices in December last year and early this year, resulting in violent street protests on several occasions. The government formed a probe committee, which blamed inefficiency of the Securities and Exchange Commission (SEC) and suggested its overhauling.

Rahman thinks that once transparency and accountability are ensured, there will be no abnormal situation in the capital market.

Addressing the seminar, Dhaka Stock Exchange president Shakil Rizvi and Chittagong Stock Exchange president Fakharuddin Ali stressed that everyone should be cautious while making comment on the share market.

The investors have to be shown respect and they should not be called as thieves while the market should be termed place of gambling, they said.

They also made a set of recommendations on reforms to the capital market.

The newly appointed SEC chairman M Khairul Hossain said, "The country's economic goals cannot be achieved without overall development of the capital market."

If new IPOs (Initial Public Offerings) were not brought in time, it would create various problems relating to the demand and the supply, he said. "There is a lack of confidence in our market and it needs to be addressed first."

"We are talking about a strong capital market when the image of SEC is seriously maculated. We are trying to overcome the situation through discussions with all quarters concerned."

A Dhaka University faculty prof Salahuddin Ahmed Khan presented a paper on 'Demand Side' at the seminar, chaired by Dhaka Chamber Of Commerce and Industries president Asif Ibrahim.

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