Dhaka, Bangladesh (BBN) – The Securities and Exchange Commission (SEC) is likely to bring some changes in the share trading process including a decrease in the transaction cycle and a permit for the netting facilities for all securities in the backdrop of a very low turnover recently.
The suggestions came at an emergency meeting between the stock market regulators, Dhaka Stock Exchange, Chittagong Stock Exchange and the Central Depository of Bangladesh.
The SEC called the emergency meeting as investors on Monday took to the streets near DSE building at Motijheel protesting at the continuous fall in share prices amid severe liquidity crisis.
“We’ve informed the SEC the reasons for the low turnover identified by the leading brokerage houses,” Shakil Rizvi, president of the DSE, was quoted by the New Age, a local newspaper, as saying.
He also said: “In Monday’s meeting we discussed over possible extension of the deadline of adjusting the single party exposure limit of the banks and a cut in interest rate on brokers’ income.”
”We will discuss the issues in a board meeting on Wednesday to finalise a proposal of the bourse to be placed in the SEC,” he added.’
The DSE also conveyed the outcome of a meeting between the premier bourse and its leading brokers held on Sunday.
Some 30 top brokers identified six major reasons for the latest fall in transaction volume including Bangladesh Bank’s change in interest rate for the commercial banks, ‘tight deadline’ to adjust single party exposure limit, and uncertainty about amendment of Bank Companies Act.
Meanwhile, Bangladesh Merchant Bankers Association at a meeting on Monday decided to raise more funds to play an active role in the stock market.
“We will sit with the SEC on Tuesday to discuss over the fund raising and possible extension of the deadline of the single party exposure limit,” Mohammad A Hafiz, vice-president of the BMBA told the newspaper.
BBN/SSR/AD-13Sept11-10:32 am (BST)
