Bangladesh Securities and Exchange Commission (BSEC) is considering the idea of establishing a new stock exchange as existing markets cannot play desired role in development of capital markets. After the demutualization of Dhaka Stock Exchange (DSE), it was supposed to result in some quality change, but it did not come in reality.
The DSE cannot play efficient role to build stable capital market as it failed to make investors confident through the months. Acting Chairman and Commission of BSEC Professor Helal Uddin Nizami made these remarks while speaking in a program in city hotel on Wednesday night. He said, “The DSE is not capable to meet the demand of economic development and sustainability in the coming days.”
If they are not able to change their position then we have to go that way (establishing a new stock exchange), he added. The BSEC Commissioner said, “The management of the stock exchange has identified a big failure in managing the capital markets.” Demutualization was done to protect the interests of investors, not to protect the interests of some brokers or dealers.
Hence, we have to think of alternatives, he said adding that, in the last two months we have been seriously considering this issue. He mentioned the stocks have recently witnessed downward trend amid liquidity crisis in the banking sector and termination of People's Leasing recently. Besides, the conflicts of BTRC and Grameenphone have had a negative impact on the market, he said adding that, it is not the responsibility of the BSEC.
Nizami said, “A party wants to blame the BSEC as it is responsible for present worst market, it is not true.” He warned these people who are playing behind the scene for present situation of capital market as they are hampering the economic development of the country. “The BSEC will take appropriate action in this regard in time. The special committee is investigating the recent collapse of the market,” he said. The BSEC has already identified some people manipulating from behind the curtain, and ultimately BSEC will take dire action, he informed.