FE Report
The Securities and Exchange Commission (SEC) on Sunday vowed to bring stability in the stock market hours after the bourses suffered one of the worst slumps in recent months, officials said.
The regulator made the pledge during a hurriedly-called crisis meeting with the officials of the Dhaka and Chittagong stock exchanges, merchant banks, asset managers and brokerage houses.
Officials who attended the meeting told the FE that the regulator had discussed the recent market slump and sought suggestions as to how to ride out the crisis.
Stakeholders told the SEC that the market was suffering from lack of confidence, liquidity crunch in the banks and swirling speculation over imposition of capital gains tax and other taxes in the upcoming budget.
SEC executive director Mohammad Saifur Rahman led the meeting. He could not be contacted for comments.
"The SEC called the meeting urgently to discuss the latest market situation. They are concerned over continued plunge of the market," said a fund manager who was present in the meeting.
He said the regulator assured the market stakeholders of unveiling a new set of measures to boost investors' confidence. They, however, did not give any time-table for enforcing the measures, he added.
"We told the SEC officials to move fast to quell the rumours now swirling in the market that the government would impose in the upcoming budget capital gains tax and make TIN mandatory in opening BO accounts," he said.
"These rumours have weighed on investors' morale," he added.
Finance minister announces the budget for the next fiscal year on June 9.
"They took notes of our suggestions and they said the issues would be discussed at the highest-level meeting of the commission," another fund manager said.
DSE Chief Executive Officer (CEO) Satipati Moitra and CSE CEO Professor Mohammed Abdullah Mamun were present in the meeting.
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