SEC to stop stock rumours
The stock market regulator will take action against those who spread rumours in the market to make it unstable, the top boss of the watchdog said yesterday.
"There might have some rumour-based trading with some risks, but that should not be reckless," said Ziaul Haque Khondker, chairman of Securities and Exchange Commission (SEC).
He was addressing the inauguration of a daylong training programme for journalists, who are currently involved in capital market reporting.
Capital Market Journalists' Forum (CMJF) and Dhaka Stock Exchange jointly organised the programme at the DSE training academy in the city.
Some 40 journalists from newspapers, electronic media and news agencies participated in the programme. It was the first session of a six-month-long training programme.
Unscrupulous investors often spread rumours and make the market unstable that harms the general investors.
The SEC chief said the depth of the market is increasing gradually with the market capitalisation to GDP ratio reaching over 20 percent and having some 20 lakh beneficiary owners' (BO) accounts.
He said successful monitoring of all banks' stock portfolios by the central bank will help keep the market sound.
“What the central bank is doing, as part of its monitoring activities, is a timely step, as the banks contribute about 40 percent of the total capitalisation in the stock market,” Khondker said.
The central bank recently through a directive asked all banks to submit a monthly report on their stock portfolio.
Khondker also said the commission is considering measures to introduce rating or grading system to rank the mutual funds' performance so the investors can get idea about the strength of the funds.
He also urged the journalists to write objective and analytical news on stock market, saying: “Nowadays many investors are influenced by your reporting and make their investment decisions considering these reports.”
DSE President Rakibur Rahman and CMJF President Ziaur Rahman also spoke at the inauguration.
Salahuddin Ahmed Khan, professor of finance at Dhaka University and former chief executive officer of DSE, delivered a lecture on 'Capital Market', while Farhad Ahmed, executive director of SEC, spoke on 'IPO Procedure: Book Building Method and Direct Listing', and Mohammad Abdul Hannan Zoarder, executive director of SEC, delivered lecture on 'Regulatory Framework of SEC'.
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