No one can manipulate stock market now: BSEC chairman
Commerce Minister Tipu Munshi said investors have to buy shares of good companies to make profits
Bangladesh Securities and Exchange Commission (BSEC) Chairman Shibli Rubayat-Ul-Islam has claimed that no one will be able to manipulate the capital market now.
"During 1996 and 2010 downfalls, everyone did not know about the capital market like today. We are working to stop the manipulation," he said.
"Some media reports have created panic in the market. That is why now we call those who do serial trading or tricks to the commission, talk to them, and take necessary steps to stop any manipulation."
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The BSEC chairman made the comments at a webinar organised by the Innovation Development Associates (IDEAS) to discuss how to build Bangladesh's capital market as a source of long-term investment.
Kazi M Aminul Islam, former executive chairman of Bangladesh Investment Development Authority, moderated the first event of IDEAS, a platform recently formed by a group of former secretaries.
The speakers made various recommendations to keep the capital market stable.
Speaking as the chief guest, Commerce Minister Tipu Munshi said, "The government is very positive about the capital market. The BSEC is doing well. Now the capital market needs more good companies.
"In order to make a profit from the capital market, investors have to buy shares of good companies."
Chief Executive Officer and Managing Director of IDLC Finance Arif Khan, who presented the keynote paper at the event, urged the securities regulator to formulate a policy on mergers and acquisitions.
He called for following the policy of saving general investors.
Shibli Rubayat-Ul-Islam highlighted the initiative to strengthen the Investment Corporation of Bangladesh (ICB).
"We have asked for Tk5,000 crore from the Bangladesh Bank or other banks to strengthen the ICB.
"We have calculated that the dividends and the shares that have not been given to the people are worth around Tk21,000 crore. It has been lying in different places for so long. We are now bringing the total amount to the ICB as a market stabilisation fund."
He said that they also asked the central bank for Tk10,000 crore at low-interest rates to reduce interest rates on margin loans.
Md Ashadul Islam, senior secretary of the Financial Institutions Division, said the educated population should be brought to the capital market.
"We need to create skilled manpower for the capital market. The use of information technology needs to be further enhanced."
