এ সি আই

নারায়ণগঞ্জের সিদ্ধিরগঞ্জের গোদনাইল এলাকায় অ্যাডভান্সড কেমিক্যাল ইন্ডাস্ট্রিজ লিমিটেড (এসিআই) ফার্মাসিউটিক্যালস কারখানায় গতকাল রবিবার আন্দোলনরত শ্রমিকদের সঙ্গে পুলিশের দফায় দফায় সংঘর্ষ হয়েছে। বিক্ষোভ দমাতে পুলিশ শ্রমিকদের ওপর লাঠিপেটা করে ও রাবার বুলেট ছোড়ে। এতে এনামুল হক (৩২) নামের এক শ্রমিক নিহত হন। সহকর্মী নিহত হওয়ার ঘটনায় শ্রমিকরা আরো বিক্ষুব্ধ হয়ে কারখানায় ব্যাপক ভাঙচুর চালায়। সংঘর্ষে পাঁচ পুলিশ সদস্যসহ অর্ধশতাধিক শ্রমিক আহত হয়েছেন।
শ্রমিকদের হামলার শিকার হয়ে কারখানার মহাব্যবস্থাপক (জিএম) ইশতিয়াক আহমেদ গুরুতর আহত হন। তাঁকে ঢাকার এ্যাপোলা হাসপাতালে
ভর্তি করা হয়েছে। আর আহত শ্রমিকদের নারায়ণগঞ্জ ২০০ শয্যা হাসপাতাল, জেনারেল হাসপাতাল ও ঢাকা মেডিক্যাল কলেজ হাসপাতালে পাঠানো হয়েছে।
নিহত এনামুলের বাড়ি রংপুরের মিঠাপুকুর উপজেলার ভাঙনি বেদগাড়া গ্রামে। তিনি কারখানার অ্যানিমেল হেলথ বিভাগে কাজ করতেন। মুন্সীগঞ্জ সদর হাসপাতাল মর্গে ময়নাতদন্ত শেষে গতকাল রাতে এনামুলের লাশ গ্রামের বাড়িতে পাঠানোর ব্যবস্থা করা হয়। এদিকে সহকর্মী নিহত হওয়ার ঘটনায় শ্রমিকরা দোষীদের বিচারের দাবিতে শ্রমিকরা গতকাল সন্ধ্যায় নারাণগঞ্জ শহরে বিক্ষোভ মিছিল করেছে।


Institutions to reinvest to prop up stock market

The institutional investors have agreed to reinvest some fund from their profit earned through investment in the share market during last couple of years at a meeting of the stakeholders on Sunday.

They would invest only a portion of their respective profits which would be decided at another meeting today between Bangladesh Bank and the institutional investors like commercial bank, merchant banks and financial institutions.

For working out the vital decision of increasing the fund flow to the market, trading on the country’s two bourses will remain suspended today and will resume trading on Tuesday when the ‘so-called’ circuit breaker on index would exist no more.

The decisions emerged from the stakeholders’ meeting at the state guest house Padma, followed by another meeting of the officials, both with Finance Minister AMA Muhith in the chair.

“I hope the midterm measures will help stabilise the market,” Finance Minister AMA Muhith told a press conference at the Finance Ministry, after the policy decision meetings.

He said that a high-powered committee would also be formed today to investigate the recent stock market crash. They would be asked to submit the report within the next 15 days.

Economists, experts and stakeholders concerned have been demanding the authorities identify the culprits responsible for the incident and award them exemplary punishment while increasing fund flow into the market to stabilise it.

Muhith, who had admitted that the government had mistakes in taking decision regarding the stock market, said that the government and the regulators were now monitoring the local stock markets very closely then ever before. “So, investigators will find out the real manipulators of the markets,” he said, replying to a question.

Asked about the 1996 scam, he said: “We failed to find out necessary witness then. But now, we have electronic system of share trading to identify the transaction with the aid of CDBL (Central Depository Bangladesh Limited).”

The minister said that a little amount of money have been transferred from the market during the recent volatility. It has not affected the market as such.

He argued that the price earning (PE) ratio was 23 points when the share market closed on Thursday after breaking the circuit breaker. The PE shows that it was a stable situation.

Muhith said the government was planning to reorganise the capital market through bringing necessary reforms in the relevant laws. It would also undertake reform plans for the regulator, SEC.

He added that the circuit breaker for the individual stocks would be revised while Bangladesh Bank and SEC officials would set more conditions in regulating the market.

The minister said the government would also investigate the allegations that Mobile Jamuna and MI Cement have taken abnormal price for their share offloaded through book building method. “We will re-introduce buy-back policy of the company law,” he added.

He said that the common shareholders have also some responsibilities as he admitted his failure in administering the market.

Prime Minister’s Economic Adviser Dr Mashiur Rahman, Bangladesh Bank Governor Dr Atiur Rahman, Securities and Exchange Commission (SEC) Chairman Ziaul Haque Khandker and Banking Division Secretary Shafiqur Rahman Patwary were present at the meeting at the Finance Ministry.

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ওশান কনটেইনার

ওশান কনটেইনারের লেনদেন আপাতত স্থগিত রাখা হবে


next::the interest rate cap removed Bangladesh Bank has moved to remove the interest rate cap on lending in the wake of a massive liquidity crisis in the financial market, an official said Sunday.

The central bank had imposed a 13 per cent interest rate cap on commercial banks lending in 2009 in an effort to boost industrial growth at a time of the worst global recession in six decades.

Although the cap has served some of its intended purposes, prompting banks to squeeze spread, it worsened the recent liquidity crisis sparked by last month's half a percentage point hike of Cash Reserve Requirement (CRR).

Experts have said the interest rate ceiling also forced some banks to borrow money at an unprecedented interest rate -- some taking it at 190 per cent -- from the inter-bank call money market over the past few weeks.

The effect spilled over to the capital market, as liquidity starved merchant banks and brokerages found it difficult to lend to the investors, precipating the stock market plunge.

Bangladesh Bank deputy governor Nazrul Huda told the FE that the interest rate ceiling would go very soon as the capping had already served its purpose.

"We capped the interest rate on lending to boost growth during the global recession. The world is no longer in recession," he said.

He said the inter-bank call money rate has come down to 4-5 per cent on Sunday -- a sign of easing of liquidity crunch in the money market.

He said some banks who had earlier decided to offer depositors 13 per cent interest rate dropped their plan and would now fix the rate at around 12 per cent.

"The association of banks have made the decision in its meeting on Friday," he said.

The move means the banks have to revise their interest rate on lending at least three percentage points higher than the Bangladesh Bank ceiling.

The artificial ceiling came under huge flak from the International Monetary Fund which termed the move unnecessary and contrary to the free market economy.

Ahsan H Mansur, head of private think tank Policy Research Institute (PRI), welcomed the move saying the lending rate ceiling "created distortion in the financial market."

"The policy of not allowing the interest rate to go up has created excess demand for credits -- some of which certainly have been diverted to the stock market," he said.

"If they have decided to remove the cap, it's most welcome. It has to go because it was a completely irrational decision," he said.

"Had there been no lending cap, it would have equilibrated the financial market in a better way by containing demand pressure," he said earlier.

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কেপিসিএল

কেপিসিএল -এর লেনদেন আপাতত স্থগিত থাকবে
===================================

Wrongs under probe

The government will form a high-profile committee to probe the allegations of stockmarket manipulation by inflating share prices or misusing the book building method.
It will also look into whether any money has been drained off the market, Finance Minister AMA Muhith said yesterday.
The government has suspended the book building method for initial public offering (IPO).
“We will form a probe committee in 15 days to find out what went wrong in the stockmarket,” said Muhith.
The minister was speaking at a press conference in the Secretariat after a meeting with stakeholders in the morning and another with high-ups of the central bank and the Securities and Exchange Commission (SEC).
“We introduced the book building system with a hope that the stockmarket will benefit from it. But the system did not work as expected. We have suspended the system and it will be redesigned,” he said.
The RAK Ceramics was listed on the Dhaka Stock Exchange since introduction of the book building system, and there is no complaint against the company.
“Two other companies are in the pipeline to complete the IPO process under the book building method -- the plans have been postponed,” said the finance minister without mentioning the names of the two companies.
According to stockmarket disclosures, Mobil Jamuna Ltd and MI Cement Ltd have already completed their IPO subscriptions, and now wait for the regulator's approval to hold IPO lotteries. The two companies were at the heart of the debate over the new method.
Other companies including GMG Airlines, Unique Hotel and Resorts that owns the Westin hotel, PHP Float Glass and Ananda Shipyard have either completed the institutional bidding or IPO roadshows.
Of them, GMG Airlines drew attention of many participants at yesterday's meeting between the finance minister and the stakeholders. The once-troubled airline got a financial lifeline after leading businessman Salman F Rahman bought a 50 percent stake in the company.
The government will examine the balance sheets of the companies eager to enter the stockmarket under the book building method following allegations of fraudulence, said some stakeholders present in the afternoon meeting.
Muhith ruled out the rumour that a huge amount of money was siphoned from the stockmarket.
He however admitted that some money had been taken out of the market, and they are looking into the matter.
“It is a stupid talk that money has been taken out of the market. Only a handful of money might have gone out,” he said.
The finance minister said the regulator is now better equipped to detect stockmarket manipulators.
“Cases have been filed against some people in 1996, but we could not prove the allegations against them for lack of evidence and witnesses. But this time we have the CDBL record.”
The government decided to discontinue the circuit breaker on share indices and ask the banks to reinvest in the market a portion of their profits from stock trading.
The minister said the merchant banks have made substantial profits from the market.
A source present at one of the meetings said the central bank had been asked to find a mechanism of how a portion of the profits can be reinvested in the stockmarket.
Muhith said the market reopens tomorrow to give it some time to keep pace with the latest decisions that take effect the same day.
“To restore confidence to the investors, we want to adopt some regulations and practices that will take effect from Tuesday. I hope the market will remain stable on its resumption,” he said.
Muhith said all stakeholders including the government, the SEC, two stock exchanges, merchant banks, institutional and general investors had a “special role” behind the stock market crisis.
“I only spoke about the SEC and us yesterday [Saturday]. There is enough to look at the way stock exchanges, merchant banks, institutional investors and general investors had behaved. It is fortunate that there is still enough scope to look at it,” he said.
“Thanks to CDBL, we will be able to see how transactions have been made. We can easily find the accounting of book building method. It is likely that many things will come to light following the probe.”
He said there might be a lack of coordination in running the market. “The Bangladesh Bank, SEC and stock exchanges regularly hold talks, but the frequency and intensity of the discussion should go up at the moment.”
“The SEC advisory board that has not been effective enough needs to sit more frequently to revamp the market,” he said.
Muhith said the board will be restructured in a week or two for playing a robust role.
He said they plan to prepare a reform package in various areas such as private placement but that will take time.
“We do not have adequate regulations about private placement.”
On the margin loan, he said it will be up to the lender and the receiver. “The SEC will only fix the margin loan ratio but won't intervene beyond that,” Muhith said.
About the circuit breaker on share indices, the minister said they will discontinue the index circuit breaker for lack of software to put the system in place.
The government also considers altering the companies law and introducing the buyback system for the companies that see their prices fall in a certain period after listing.
The minister said adequate importance was not attached to the PE ratio while following the book building method. Rather, the people concerned spent too much time on the market.
The system will remain suspended until it is redesigned properly, he said.
Lending his support to the SEC, the minister said, “The market regulator's workload has increased over the last two years. We have decided to double its manpower.”
He said appointment of a central bank representative in the SEC will be made mandatory for a better coordination between the two.
Muhith said the central bank will be flexible to merchant banks' exposure to the stockmarket.
He urged retail investors to be cautious before investing in the market.
“It is not that kind of market where you invest Tk 10 and expect Tk 15 the following day.”
“I think many still do not know the face value of the shares they are investing in. They have to be careful. Stock exchanges, bankers, merchant banks, institutional investors and regulators have to make them aware.”
Given the limited number of shares with strong fundamentals, the PE ratio of 23 is not extremely high, he said.
“We see the same type of ratio in neighbouring countries. The PE ratio might seem higher here since we have a small market.”
“The PE ratio of 23 is tolerable but not ideal. Of course, there is risk in the market,” he said in reply to a query.
SEC Chairman Ziaul Haque Khandkar said the country's stockmarket index grew by almost 80 percent last year, the highest in the world.
“As a result, we took decisions every now and then to control the market,” he said. “We will now take mid and long-term policies, and give directives to merchant banks on margin loans. Bit we will not intervene in their implementation process.”

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বাজে কথা

অর্থমন্ত্রী আবুল মাল আবদুল মুহিত বলেছেন, শেয়ার বাজার থেকে বিপুল পরিমাণ অর্থ চলে গেছে এটা একেবারে বাজে কথা, বাজারের অর্থ বাজারেই রয়েছে। হয়তো অতি সামান্য টাকা কয়েকজন বিনিয়োগকারী নিয়ে গেছে। আমরা এ ব্যাপারে ব্যবস্থা নিচ্ছি।
তিনি বলেন, ‘পুঁজিবাজারের এই অবস্থার জন্য সবাই দায়ী। আগে আমি এসইসি এবং আমার ভুলের কথা বলেছি। কিন্তু স্টক এক্সচেঞ্জ, প্রাতিষ্ঠানিক বিনিয়োগকারী, মার্চেন্ট ব্যাংক এবং বাংলাদেশ ব্যাংকও শেয়ারবাজারের এই অবস্থার জন্য কমবেশি দায়ী।’
রোববার এসইসি, ডিএসই, সিএসই’র প্রধানদের সঙ্গে রাষ্ট্রীয় অতিথি ভবন ‘পদ্মা’য় বৈঠকের পর বিকেলে সচিবালয়ে বৈঠক শেষে সন্ধ্যায় সাংবাদিক সম্মেলনে অর্থমন্ত্রী এসব কথা বলেন।
অর্থমন্ত্রী বলেন, ‘পুঁজিবাজারে স্বাভাবিক অবস্থা ফিরিয়ে আনার জন্য প্রতিষ্ঠানিক বিনিয়োগকারীদের লাভের টাকার পুরোটাই যাতে বাজারে বিনিয়োগ করা হয় সে ব্যবস্থা নেওয়া হবে। বাজারে এসইসির ঘন ঘন হস্তক্ষেপও বন্ধ করা হবে। সূচকের সার্কিট ব্রেকার শেষ মুর্হুতে চালু করা হলেও এটা আর থাকছে না। তবে কোম্পানির সার্কিট ব্রেকার আগে থেকেই ছিল এবং এটা থাকবে। তবে এটাকে সংস্কার করা হবে।’

: Economists Sunday demanded punishment of those involved in committing crimes in the country’s capital and money markets, as both were smarting from volatility—the former one at its worst.

"The money market would face major problem in the future if the criminals responsible for massive fall of the stock market weren’t punished," said former Bangladesh Bank Governor Dr. Salehuddin Ahmed at a discussion at the National Press Club.

Economic Reporters Forum (ERF) organised the programme—hot on the heels of a haemorrhage on the economic front, with many investors in stocks cheated out of their purse.

Salehuddin said those who were responsible for the ‘96 stock-market scam through cooking the books should also be brought to book, though it is too late.

Renowned economist and PKSK chairman Dr Kazi Kholiquzzaman Ahmad finds any such punitive action difficult because of a nexus between politics and economics.

"Taking step against the culprits is an imperative, but very difficult it is. Because business and politics are deeply interlinked," the economist told the meet about the state of political economy of the time.

Economists at the discussion stressed the need for formulating a ‘monetary policy’ considering the country’s growth, tolerable inflation and employment generation.

They forewarned such a policy would not be effective if the money-market maestros played a ‘foul game’.

It would not be wise to decrease loan in productive sectors. But Bangladesh Bank has to be confirmed whether loans in the private sector are being used properly, speakers added.

They again said Statutory Liquidity Requirement (SLR) and Cash Reserve Requirement (CRR) should not be changed frequently. Bangladesh Bank and the Securities and Exchange Commission (SEC) have to take effective initiative in this regard.

Palli Karma Sahayak Foundation (PKSF) chairman Dr. Kazi Kholiquzzaman Ahmad and Krishi Bank chairman Khandaker Ibrahim Khaled also spoke at the discussion with ERF president Monowar Hossain in the chair.

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