2024-09-12 19:26:39
Bangladesh Capital Market Investor Unity Parishad has demanded the implementation of 21-point recommendations for the development, stability, protection and confidence of investors in the capital market.
On Tuesday (September 10), General Secretary Kazi Abdur Razzak sent a letter to the Chairman of Bangladesh Securities and Exchange Commission (BSEC) demanding the implementation of 21-point recommendations.
Copies of this letter have been sent to the Office of the Chief Adviser, Ministry of Finance, Financial Institutions Department, Bangladesh Bank, National Board of Revenue and Anti-Corruption Commission.
The letter mentions that corruption, irregularities, looting, disclosure of opaque financial reports by companies, weak corporate governance, non-payment of desired dividends, looting by keeping money in reserves, irregularities in book building system bidding are among the reasons for the recent fall in the capital market. Besides, looting of thousands of crores of rupees by approving IPO of weak, indebted, closed companies, issuing right shares and approving Beximco Green Sukuk Bonds. Those tasked at the BSEC over the last two terms to bring the market back to normal after the worst crash of 2010, made the market more volatile and abnormal. Manipulation circles, and looters smuggle thousands of crores of rupees abroad from the market through irregularities and corruption. Capital market, the lifeblood of the country’s economy, is in deep crisis today. The questionable role of most of the stake holders, starting from the past regulatory body of the capital market, the unlimited corruption and looting of several dishonest officials of Dhaka-Chittagong Stock Exchange, ICB, BSEC are responsible for the destruction of the capital market. Besides, the backbone of the capital market has been broken through unethical placement trade on the lines of secondary market or parallel, bribery and corruption in approving IPOs of weak and closed companies. Investors are very calm. Under your leadership, the present commission has already taken several steps for the development of the capital market. Confidence is beginning to return to the capital market. Investors see a glimmer of hope.
The recommendations aimed at stabilizing the capital market and restoring investor confidence are:
1. Salman F Rahman, the main hero of the destruction of the capital market, should be investigated and brought under the exemplary punishment of all the individuals and institutions and they should bring back the looted money and invest it in the capital market.
2. According to the investigation report of Khandkar Ibrahim Khaled, the guilty persons and organizations should be brought under trial subject to re-examination.
3. The false case filed by the BSEC against the leaders of the Bangladesh Capital Market Investors Unity Council must be withdrawn immediately. Apart from this, arrests, attacks, lawsuits, intelligence surveillance and all kinds of harassment of activists must be stopped.
4. A special allocation of Tk 50,000 crore should be made to increase the investment capacity of the market intermediary institutions in the capital market.
5. The book building system under the Public Issue Rules 2015 should be canceled and the IPO should be approved under the fixed price system as before.
6. Many companies listed in the capital markets are reluctant to pay decent dividends despite earning good profits. We strongly demand that companies pay at least 50 percent of their net profits as dividends.
7. Multinational profitable companies should be listed for the sake of capital market development.
8. Disparity in investing in the SME market should be eliminated.
9. Buyback law should be passed.
10. The Financial Reporting Act should be implemented very quickly. The OTC market should be closed and the companies there should be brought back to the main market even with some concessions.
11. Listed companies should reduce their corporate tax rates.
12. To implement the 2CC Act, the entrepreneurs and directors of the companies who do not have 2 percent individually and collectively 30 percent of shares, must take necessary steps to retain their shares.
13. Force sales must be stopped. Due to the maintenance of floor price and 3 percent circuit, investors affected by the Code will have to purchase shares at the selling price as an incentive.
14. Placement trades must be closed.
15. Undercapitalized and weak companies should stop allowing IPOs.
16. To ensure the transparency and accountability of the capital market, all listed companies, brokerage houses, stock exchanges, stock dealers, issuers, merchant bankers, auditors, asset managers, asset evaluation companies must be instructed to comply with the law.
17. There should be an investment guideline for ICB.
18. The role of all mutual funds listed in the capital market should be examined.
19. Incentives given to banks and non-banking financial institutions to increase investment capacity in the capital market should be ensured whether they are properly implemented or not.
20. All information of the company should be updated on the stock exchange website.
21. Investors should enact an ‘Investment Security Act’ as soon as possible and implement it.