Measures for security in stock market suggested

The home affairs ministry, in a move to maintain order in the stock market, on Thursday asked the Dhaka Stock Exchange to strengthen its security system and introduce identity cards for investors.

It also suggested installation of closed-circuit TV cameras in the areas near the Dhaka Stock Exchange leading up to Shapla Square in Motijheel to help the law enforcement agencies to maintain law and order.

The ministry held a meeting with the Securities and Exchange Commission and the Dhaka Stock Exchange authorities against the backdrop of frequent demonstrations and incidents of violence after the free-fall of share prices and the government's perceived reluctance to protect the interest of common investors in the last few months.

'We have asked the Dhaka Stock Exchange to heighten its own security to maintain law and order,' home affairs

minister Sahara Khatun told reporters after presiding over the meeting at the secretariat.

She said that the ministry had proposed formation of a crisis management team and a coordination committee to tackle any critical situations in the capital market in a more effective manner.

The ministry's suggestions came up at the meeting as the DSE and SEC expressed concern over incidents of violent protest, in protest against the plummeting of share prices, when angry demonstrators vandalised vehicles and other properties in Motijheel.

Law enforcement agencies often had to resort to lathi-charge and firing of tear-gas shells and widespread arrests to contain violent protests by investors in Motijheel commercial area. Most of around 33 lakh beneficiary owners account holders, mainly small-scale investors, lost the major part of their capital because of the stock market debacle that started in January.

When asked when the ID cards would be issued, DSE's president Shakil Rizvi told reporters that they would take a decision in this regard after discussion with the board of directors.

Home affairs secretary Abdus Sobhan Sikder said that the meeting recommended increasing the number of security personnel inside the DSE.

The newly-appointed chairman of the SEC, M Khairul Hossain, and senior officials of the police and Rapid Action Battalion were also present at the meeting.

The SEC's chairman termed the meeting a 'courtesy call' on him after his appointment on Sunday.

Source: New Age

Dhaka stocks slides for second day as confusion returns

Dhaka stocks continued to slide for the second consecutive day on Thursday as the retail investors were yet to regain confidence in the market due to the state of dormancy of the Securities and Exchange Commission and the possibility of introducing tax in the capital market.

Market operators said general investors on the day went for sell-offs while most of the institutional investors remained inactive.

They said the delay in reconstruction of the SEC was making the investors confused about what was coming next. They said the rumours about imposition of capital gain tax and making taxpayer's identification numbers mandatory for opening beneficiary owner's accounts in the next national budget also discouraged investors from taking active part in trading.  

They also said most of the institutional investors, especially the banks, took a wait-and-see policy as they were waiting for the announcement of the budget for the next fiscal year.

Market insiders said as the central bank took a hard line against the commercial banks, they went on backfoot.

'The news that the Bangladesh Bank will investigate the roles of nine commercial banks during the stock market crash in January has also affected the market,' said a stockbroker.

The benchmark general index, or DGEN, of Dhaka Stock Exchange declined by 42.54 points or 0.73 per cent to close the day at 5,718.07 points.

Turnover of the bourse on the day also dropped to Tk 426.49 crore, compared to previous day's Tk 455.04 crore.

Out of 256 issues traded on the day, 149 declined, 100 gained, and seven remained unchanged.

Trading on the DSE started in the negative zone on Thursday. The index fluctuated heavily in the first hour and then steadily inched down, ending the day in red.

DSE senior vice president Ahsanul Islam said, 'The investors are yet to regain confidence after the recent market crash and it will take some more time.'

In his opinion, 'What is most needed at the moment to address the situation is an effective and functional SEC.'  

'A lot of work has to be done to develop the market from here on and the commission has to initiate those moves,' he added.

Source: New Age