Poor IPO discourage investors: FID secretary
Investors are mainly discouraged from the stock market by the non-fundamental companies who entered the market with manipulated financial results, Financial Institutions Division (FID) Secretary Md Abdur Rahman Khan said today (22 May).
"Many companies entered into the stock market with manipulated financial health. But after that they did not pay healthy dividends as their real health got revealed," he said at an event organised by the Bangladesh Securities and Exchange Commission (BSEC).
The event was chaired by Professor Shibli Rubayat-Ul-Islam, chairman of the BSEC, with Speaker Dr Shirin Sharmin Chaudhury attending as the chief guest. Waseqa Ayesha Khan, state minister for Finance was present as a special guests.
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Speaking on the occasion, Abdur Rahman said, "For those of us who are merchant bankers, the securities regulator has given concessions to non-fundamental companies for due diligence.
"As the business of non-fundamental companies is not good, their share prices are stuck at the bottom. And those who took money from the market and used it in business have made good profits and paid dividends and their share prices are at a good level."
