The continuous decline in the country’s capital market does not stop in any way. The bleeding in the capital market is increasing gradually. As days go by, the level of decline is increasing. The main index of the Dhaka Stock Exchange (DSE) fell to its lowest level in four years.
Investors are losing capital every day due to the continuous decline, say people related to the capital market. Having lost everything, they are almost destitute. It is as if there is no one to see this distressed capital market. In such a situation, forced sale (compulsory share sale) is being done to adjust the loans given to investors by merchant banks and brokerage houses. As a result, investors spend their days in fear of forced sales. Investors and related parties are considering this situation as silent ‘bleeding’.
Investors say the stocks they hold in their portfolios are down 60 to 70 percent. They are unable to sleep properly at night due to the worry of losing capital. Investors’ families are in turmoil due to financial strain due to loss of capital. Investors are being pushed to death in the name of capital market reforms. However, BSEC or the government has no foresight in such a situation of the capital market.
Investors are spending days in fear due to the continuous decline. In this situation, if the forced sale is not stopped, the capital market will not turn around. Where are those who used to go up and down for so long to give the floor price (minimum limit of the share price) in the capital market?
However, BSEC says that this price drop is unusual in the capital market. BSEC is looking into the matter in depth. A four-member investigation committee has already been formed to look into the abnormal decline. The committee will look into the reasons for the decline. However, it is wrong to understand that the investors are claiming that the stock market is falling due to the commission.
Analysis of the market has shown that similar to Sunday, Monday (October 28) has seen a big price drop in both capital markets. On this day, the main index of DSE, DSEX, fell by 66.86 points to 4,898 points, which is the lowest in four years. Earlier, on December 2, 2020, the DSE index stood at 4,934 points. Khandkar Rashed Maksud took charge of BSEC as the new chairman on August 19. On that day, DSE’s main DSEX index was at 5,775 points. After this, the DSEX index fell by 877 points in two months. More than two months have passed since his accession, but the confidence of investors in the capital market has not increased, but rather decreased. This is increasing the frustration of investors.
On Monday morning, both the capital markets started trading with prices falling. According to the pre-announcement, around 10:30 in the morning, general investors led a human chain and protest in front of the old building of Dhaka Stock Exchange in Motijheel, demanding the resignation of BSEC Chairman Khandkar Rashed Maksud. General investors led a human chain in front of Bangladesh Bank in order to implement 10 demands as an immediate action to prevent the collapse of the capital market around 2 pm.
Drawing the attention of finance advisors to the human chain and protest program, the investors said, Bangladesh Securities and Exchange Commission (BSEC), Bangladesh Bank, National Board of Revenue, Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), Investment Corporation are aiming to transition from the current situation in the capital market. of Bangladesh (ICB), Bangladesh Association of Publicly Listed Companies (BAPLC), Bangladesh Merchant Bankers Association (BMBA) and DSE Brokers Association of Bangladesh (DBA) for discussion. Collectively address the capital market crisis. The capital markets of neighboring countries India and Pakistan are on the upswing. Even the Sri Lankan stock market has turned around. But, the capital market of Bangladesh is gradually declining. The reason for this needs to be found urgently.
Investors also said that in 2010 we did not suffer as much as we did in the last two and a half months. Share prices fell in 2010. But, now the situation is so bad that the face value of the shares has come down below 10 rupees. We have become destitute. We are not able to live properly with family. An urgent appeal to the government, save 2 million investors in the capital market. Because, about 1 crore people are related to 2 million investors. We have come to invest in the capital market. 70 percent of our invested money has been lost due to the continuous fall in prices in the last two months. We are all dreaming of a new Bangladesh. The state has no idea about this. We are not here to beg. We are here to invest capital, which will contribute to the economy of the country. However, we are now destitute after losing that capital. We have confidence in the chief adviser of the present government. But, investors have no confidence in the current BSEC commission.
Mohammad Iqbal, an investor of Sheltech Brokerage Limited, who lost his capital due to forced sale, told RisingBD, “I bought shares worth 36 lakh rupees with a margin loan. But, as a result of the continuous fall in the capital market, on October 21, Brokerage Hiz forced sale of my shares. I was greatly affected by it.
Last Sunday (October 27), investor Mohammad Ishtiaq’s shares were forcibly sold by SBAC Bank Investment Limited.
Mohammad Mohsin, Joint Secretary of Bangladesh Capital Market Investors’ Unity Council, said, “Don’t the respected advisors of the government see the plight of the capital market?” Investors stand on the street to lament the loss of capital? Why should investors be destitute? Investors are being forced to sell their shares every day as a result of the continuous fall in the capital market. Every day some investors are becoming destitute. Is there no one to see them? This commission has failed to protect the interest of capital market and investors. Therefore, BSEC Chairman Khandaker Rashid Maqsood should be removed very soon.
Azad Hossain Bachchu, vice-president of Bangladesh Capital Market Investors Unity Council, said, people die one day, and we investors die every day. Chairman of BSEC is ineligible. Nothing good can be expected from him in this capital market. Our money is gone. Our dignity is gone. We have nothing left to lose. If the BSEC chairman does not resign, we will announce agitation against this government. I draw the attention of the Principal Adviser to protect capital markets and investors.
BSEC’s Executive Director and Spokesperson Mohammad Rezaul Karim told RisingBD that the recent fall in the capital market is unusual. BSEC is looking into the matter in depth. The present commission is working tirelessly to establish a transparent and accountable capital market. This requires the full cooperation of the concerned parties.