Securities regular could not consider DSE application for a quorum crisis
Share markets – which remained closed since late March as part of the government response to the widening coronavirus pandemic – are unlikely to open during the general holidays.
"The Dhaka Stock Exchange cannot reopen amid the ongoing general holidays as the securities regulator did not consider our proposal to resume trading from May 10," a director of the country's leading bourse told The Business Standard.
Meanwhile, the Bangladesh Securities and Exchange Commission (BSEC) could not consider the DSE application due to a quorum crisis.
"The DSE sought regulator's permission for trading. But it was not possible because of a quorum crisis," Saifur Rahman, an executive director and spokesman of the commission, told The Business Standard.
The securities regulatory commission consists of four commissioners and one chairman. Of them, only one commissioner and the chairman were present. At least two commissioners and the chairman have to be present to fulfil the quorum.
The Dhaka Stock Exchange had earlier sought the securities regulator's permission to resume trading from May 10 and get exemption from some regulations.
The DSE board of directors during an online meeting on April 30 agreed in principle to resume trading on the bourse.
According to sources at the DSE, the stock exchange sought exemptions from some policies and regulations while resuming trading.
The DSE also asked for including the stock market on the list of essential services amid the ongoing shutdown.
Trading on both the bourses remained closed since March 26 when the government enforced a prolonged shutdown to contain the spread of Covid-19.
Later, the closure of trading was extended till May 5 following extensions of the holidays.
This year the stock market indices were already going through an extreme volatility because of a slowdown in exports, concerns over the health of the banking sector, and a turbulent money market.
The novel coronavirus outbreak added to all existing worries in the stock market and triggered a free fall in the last trading period.
The DSEX, the benchmark index of the Dhaka bourse, suffered a 20 percent fall until March 18, but later recovered partially with a 10 percent gain due to the new floor prices.
Before the nationwide shutdown was imposed, the DSEX stood at 4,008 points on March 25.