Dhaka, Bangladesh (BBN) – The premier bourse will sit with the securities regulator on Wednesday to discuss the ongoing situation of the stock market, officials said.
“A meeting will be held at the office of the Bangladesh Securities and Exchange Commission (BSEC) to discuss about the current market situation,” a DSE official said on Tuesday.
He also said that the they also discuss about deduction of bank’s investments, which have been made in equities of subsidiaries and non-listed companies, from their exposure to capital market, the procedure of approving initial public offering (IPO) proposals by the securities regulator and the brokers’ demand for quota in IPOs.
Since the non-stop countrywide blockade started on January 6 last, the benchmark index DSE plunged 313 points or 6.29 percent to close at 4,656 points on Tuesday.
The turnover value also declined substantially since then following political strife across the country.
Under such situation, the premier bourse decided to sit with the securities regulator to discuss on as to how the market situation can be improved.
Another DSE official said that the premier bourse has already made a plea to the central bank for allowing banks’ investment as per the provision made earlier by its circular issued on November 24, 2011.
The circular of November 24, 2011 said that the bank’s investments made in the equities of subsidiaries and in shares of non-listed companies will not be counted as part of bank’s exposure to capital market.
“We have submitted to the proposal to the central bank following the demand of top brokerage firms which are also the subsidiaries of banks,” he added.
BBN/SSR/AD-03Feb15-11:12 pm (BST)
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