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SEC package 'in a day or two'

Posted by methun

The Securities and Exchange Commission will announce a 'complete package' to stabilise the shaky market in a day or two to guard the interests of retail investors, says a member.

Helaluddin Nizami, however, declined to comment on the components of the package at the moment.

"Media will be briefed on the details," he said after a meeting of stakeholders with finance minister A M A Muhith on Sunday night.

According to him, the two-and-a-half-hour meeting was 'successful'. It started around 7pm at the Planning Commission in Sher-e-Bangla Nagar.

On compensation to the victims of continued fall in share prices, the SEC member said, "It takes time to identify the retail investors sustaining damage and to account the amount of that damage.

"A combined package will be announced taking into account the whole scenario to serve their interests best and stabilise the market."

Responding to a query, Helaluddin said the National Board of Revenue (NBR) will explain the technicalities relating to investment of undisclosed money into the capital market.

"There is no reason to get puzzled over the matter," he added.

He also said the central bank had agreed in principle to the proposals for initiating steps to stabilise the market.

"The Bangladesh Bank will consider the proposals sympathetically. The package will reflect their concern," Helaluddin said.

He said the finance minister instructed Bangldesh Association of Banks chairman Nazrul Islam Mazumder and Association of Bankers, Bangladesh chairman K Mahmud Sattar to take steps to increase institutional investments in the market.

Earlier in the day, Muhith said they were expecting to discuss ways to stabilise the stock market and also steps to compensate the retail investors.

Last Wednesday, prime minister Sheikh Hasina met over 20 stock market stakeholders at her official residence Ganabhaban. The meeting followed massive fall in stock prices in the days after the nine-day Eid recess and a series of street protests by small investors.

Hasina promised that the government will do whatever is needed to prop up the market.

The finance minister also met with some of the stakeholders on Friday. Stock market regulator SEC chief M Khairul Hossain said measures were taken as per the decisions of the meeting with the prime minister were on track but declined to elaborate.

The trading on the stock market has witnessed a positive trend since Wednesday's meeting.

The previous week's trading ended in a flurry of exchanges with the turnover topping Tk 4.26 billion on Thursday with most issues marking a healthy rise.

The general index of the Dhaka Stock Exchange registered a 129.14point or 2.49 percent gain at the close of trading on Sunday.

Bangladesh Bank governor Atiur Rahman, Finance Division secretary Mohammad Tarek, Bank and Financial Institutions Division secretary Shafiqur Rahman Patwari, Pubali Bank chairman Hafiz Ahmed Majumder, Standard Bank chairman Kazi Akramuddin Ahmed, Bangladesh Insurance Association president Sheikh Kabir Hossain, Insurance Development Regulatory Commission chairman Shefayet Ullah, Investment Corporation of Bangladesh managing director Mohammad Fayekuzzaman, Federation of Bangladesh Chamber of Commerce and Industry president A K Azad, and CDBL managing director and chief executive officer M H Samad attended the meeting.

SEC chairman M Khairul Hossain, its members Helaluddin, Amzad Hossain, Arif Khan and A Salam Sikder, Dhaka Stock Exchange president Shakil Rizvi and Chittagong Stock Exchange chairman Fakharuddin Ali Ahmed, and four directors of the country's two stock exchanges also attended the meeting.

Bangladesh Bank's former governor Mohammad Farash Uddin, former SEC chairman Faruk Hossain and lawyer Anisul Haque were also present.

Maj Gen Rezanur Rahman Khan represented the Armed Forces Division.

Prime ministers advisors H T Imam and Mashiur Rahman also attended the meeting.

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