Managing Director of Dhaka Stock Exchange (DSE) ATM Tariquzzaman said that stock exchanges should have more powers in vetting IPOs for compliance as it would boost investors' confidence.
He said this while speaking at the ‘CMJF Talk’ organized by the Capital Market Journalists Forum (CMJF), held at its office in Paltan on Tuesday.
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The DSE MD said as a regulator the Bangladesh Securities and Exchange Commission (BSEC) currently approves all types of public offers, including initial public offerings (IPOs).
However, different countries around the world have different rules. Somewhere the stock exchange approves and somewhere else the regulator gives the approval, he pointed out.
In response to a question, Tariquzzaman said that the floor price (minimum sale rate) is not a permanent solution to improve the confidence of the capital market.
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“Such initiative is direct intervention in share price determination. It is not right for regulators or stock exchanges to fix prices. It is not present anywhere in the world,” he pointed out.
The former executive director of capital market regulator BSEC ATM Tariquzzaman took charge as Managing Director of DSE in September this year. At the event, he highlighted various aspects of the current status of DSE and various plans for its development.
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CMJF President Ziaur Rahman presided over the programme while it moderated by the general secretary of the organization Abu Ali.