SEC chairman cautions investors not to go after rumours
Securities and Exchange Commission (SEC) Chairman, Faruq Ahmad Siddiqi, cautioned the investors yesterday not to buy shares on rumors so as to avoid loss in the capital market.
"There is every possibility to suffer loss, if you buy shares of a company without judging its fundamentals," he said at the inaugural function of Capital Market Services Division, the brokerage house of Shahjalal Islami Bank, in Dhaka.
Presided over by the chairman of the bank, Akkas Uddin Molla, the function was attended, among others, by Dhaka Stock Exchange (DSE) President, Mohammad A Bokhari, and Chittagong Stock Exchange (CSE) chairman, Nasiruddin Ahmed Chowdhury.
SEC chairman said SEC is trying to protect the interest of the small capital market investors.
"We say the highest ceiling for loan disbursements against share is 1:1. It is in the jurisdiction of the banking authorities to decide how much loan they would provide against the shares," he said.
He hoped for a more vibrant capital market, provided the economy grows satisfactorily.
Terming the influx of new institutions into the capital market as a good sign, Faruq Ahmad Siddiqi said, this would bring more professionalism in the market.
He said he is against any sort of compulsive step to make private firms enter in the capital market, adding, "Rather, we have to encourage and motivate them to enter the market".
The SEC chief expressed dissatisfaction at the 'still poor' rate of market capitalization.
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