Use tech to stamp out stock gambling: experts
Increasing the use of technology and digitalisation across every aspect of the stock market may reduce gambling and ensure good governance, said analysts yesterday.
Technology is important for at least three reasons, said Shaikh Shamsuddin, a commissioner of the Bangladesh Securities and Exchange Commission (BSEC).
"This includes making the process quicker, reducing costs and ensuring good governance, accountability and transparency," he said.
Nowadays, there is no way to make progress other than ensuring the use of modern technologies and digitalisation in the stock market, he added.
Shamsuddin made the comments while addressing a webinar styled, 'Necessity of Digitalisation in the capital market in current pandemic situation", organised by the Chittagong Stock Exchange (CSE).
Officials from the BSEC and other stakeholders attended the event organised to mark the World Investor Week 2020, an initiative of the International Organisation of Securities Commissions.
"However, digitalisation does pose some risks, so the bourses should be cautious to ensure that any use of technology is investor-friendly," the commissioner said.
Investors also have a part to play and they can help reduce the gambling opportunities only by adopting new technologies.
"The ongoing Covid-19 pandemic has taught us a lesson on the importance of digitalisation," said CSE Chairman Asif Ibrahim.
The market was shut down for about two months during the nationwide lockdown aimed at curbing the spread of the Covid-19.
"If the market was properly digitalised, we could have continued trading even during that time," he said, adding that both bourses are expected to be fully digitalised in 2021.
The capital market has been in a good shape in recent times as investors regained some confidence after a new commission was appointed, said Prof Abu Ahmed, a market analyst.
However, some junk stocks are appearing in the top gainers' list without any reasons. There must be some players behind the sharp increase of the price of the stocks, he said.
"The stock market regulator can easily identify perpetrators using surveillance software."
SM Sohrab Uddin, a faculty member of the business administration department at Chattogram University, and Mamun-Ur-Rashid, managing director of the CSE, also spoke.
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