2024-04-22 08:58:05
A manipulative cycle is active in creating volatility in the capital markets. In recent times, the cycle has grabbed shares at low prices through serial trading. On the one hand, the price index has fallen in the capital market, and on the other hand, ordinary investors have become destitute.
Besides creating instability in the capital market, the manipulation cycle is working to tarnish the image of the government. BSEC is taking strict disciplinary action against those involved in serial trading or manipulation.
Recently, such information has emerged in the investigation of the surveillance department of Bangladesh Securities and Exchange Commission (BSEC), the capital market regulatory body. This information is known from the source of BSEC.
According to sources, the manipulation circle started selling the shares of the index mover company at a lower price than the opening price at the beginning of the trading in the capital market in order to grab the shares at a lower price. When the price falls, other members of the circle grab those shares from different BO accounts. This has had a major negative impact on the stock market price index. The share prices of other companies are also affected due to the negative impact on the share prices of large capitalized companies in particular. Although the share price of these companies decreased slightly, negative trend is seen in the index. As this is creating panic among the common investors, the stock market of the country is not able to overcome the continuous decline due to the pressure of selling shares at low prices.
Members of this active manipulative circle have been destabilizing the capital markets for a long time. They are not limited here, they are purposely spreading false information against the government and the commission by calling the officials of various broker houses. This information has come out in the investigation of the surveillance team of BSEC.
According to BSEC sources, the regulatory body has decided to take strict disciplinary action against those involved in manipulation. Besides, the regulatory body is deciding to cancel the IPO quota by identifying the brokerage houses involved in manipulation as eligible investors. At the same time the persons who are involved in these manipulations will be brought under penalty. Besides, the institutions (brokerage and merchant banks) which are directly and indirectly involved in the manipulation, will be brought under strict punishment including suspension of the renewal of the certificate of those institutions.
Incidentally, in the capital market, one or more people use various techniques to artificially increase or decrease the share price. Serial trading is when an individual or multiple individuals (consolidated cycle) open several accounts and buy and sell shares among themselves to raise or lower prices.