In just two days (Sunday-Monday), the Dhaka Stock Exchange’s (DSE) prime index has dropped a staggering 218 points, resulting in the losses of millions of taka of the investors and traders. With approximately three million investors currently engaged in the stock market, the downturn has left many disheartened. The Bangladesh Securities and Exchange Commission (BSEC) expressed serious concerns about suspicious market activities. To investigate these irregularities, the BSEC has formed a four-member committee tasked with providing a detailed report within 10 days. Rezaul Karim, the executive director of the BSEC, assured the public that the existing task force will intensify its efforts in the coming days. DSE closes lower amid heavy selling pressure, Tk 357cr in transactions Besides, several focus committees will be formed under the task force to maintain a close watch on the market. The stock market crisis has prompted investors to call for the resignation of BSEC chairman Rashed Maksud, criticising his inability to stabilise the market. Many investors, who had utilised margin loans, are experiencing forced selling, which has led to considerable losses in equity. The BSEC acknowledged that junk shares have flooded the market due to a string of poor IPOs over the past 14 years. Investors are now urging the commission to implement a buyback law and eliminate underperforming IPOs. Investors protest decline in stock market There is also a strong demand for accountability regarding Shiblee Rubayet, a former commissioner allegedly involved in a previous stock market scandal. In a recent statement, Rezaul Karim said that the people involved in past market scams will soon face legal action. Brokerage houses are reporting a noticeable decline in activity, with far fewer investors present compared to a few months ago when the market was relatively steady. Saiful Islam, president of the DSE Brokerage House Association, has called for liquidity support to help stabilise the market. He also urged the government to reconsider the current approach of categorising companies based on dividend disbursement, arguing that it should be left to investors to make their own investment decisions. “Let the market run at its own pace. When attempts are made to control it, a collapse is inevitable, and that is exactly what is happening now,” Saiful stated. When asked about a potential market recovery timeline, neither the DSE nor the BSEC could provide a definitive answer. However, Mominul Islam, chairman of the DSE, expressed hope that market conditions might improve by December. This downturn has cast a cloud of uncertainty over the financial landscape, and all eyes are now on the BSEC and DSE to see how they will address investors’ concerns and work to restore market stability.