BSEC forms enquiry committee for market fall
The Bangladesh Securities and Exchange Commission (BSEC) formed a four-member inquiry committee today to investigate the reasons behind the recent market fall.
In the order, the commission observed the recent downward trend in the market, which appears unusual and suspicious. Therefore, the regulator formed the committee in the interest of investors.
The four committee members are Mohammad Shamsur Rahman, additional director; Muhammad Oarisul Hasan Rifat, deputy director of BSEC; Mahfuzur Rahman, AGM of DSE; and Kazi Minhaz Uddin, AGM of CDBL.
The commission also decided to identify persons involved in spreading rumours in the market, examine any other related issues, and provide recommendations to boost investor confidence.
The decision was made as the DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), experienced its largest single-day drop since 15 March 2020.
Additionally, the DSEX fell below the psychological threshold of 5,000 points for the first time in four years, due to weakened investor confidence, with turnover dropping below Tk300 crore.
The market has been experiencing a continued downturn amid heavy share sell-offs due to ongoing economic uncertainty, recently exacerbated by a policy rate hike.
The bearish trend began in mid-August, leading to a loss of over 1,000 points by Sunday, while market capitalisation decreased by approximately Tk66,000 crore.
From 6 August to 24 October, investors closed over 12,000 Beneficiary Owner (BO) accounts due to their reluctance to remain in an unsteady market, according to Central Depository Bangladesh Limited.
According to the BSEC order, the four-member committee is directed to submit its report within 10 working days.