United News of Bangladesh

The Bangladesh Securities and Exchange Commission (BSEC) has launched a series of enforcement action against listed companies, their directors, auditors and issue managers following investigations into financial irregularities and violations of securities laws. In its 973rd commission meeting, chaired by BSEC Chairman Khondoker Rashed Maqsood, the regulator decided to refer the case of ACME Pesticides Limited to the Anti-Corruption Commission (ACC) for necessary action. The ACC will investigate four board members -- Chairman Shanta Sinha, Managing Director Reza-ur-Rahman Sinha, Director Ahsan Habib Sinha, Director K M Heluar -- along with Company Secretary Sabuj Kumar Ghose, Chief Financial Officer Selim Reza, and several placement holders including SK Trims & Industries Ltd, Bikrampur Potato Flakes Industries Ltd, Bengal Assets Holdings Ltd, Chittagong Pesticides & Fisheries Ltd, Heritage Capital Management Ltd, and NRB Equity Management Ltd for failing to pay against allotted shares. The BSEC also initiated proceedings to cancel the registration of Shahjalal Equity Management Ltd (SEML), the issue manager of ACME Pesticides, for submitting false or inconsistent information in the prospectus and failing to perform its responsibilities. Action will also be taken against audit firm Shiraz Khan Basak & Co. for not reflecting ACME’s true financial condition in pre-IPO audited statements. Auditor Shafiq Basak & Co. will face referral to the Financial Reporting Council (FRC) for inadequately disclosing IPO proceeds in audited reports. Unilever, Nestlé among 10 MNC to enter bourse; DBA lauds BSEC initiative Genex Infosys Limited also faced penalties after BSEC found violations of securities laws during trading of Sonali Paper & Board Mills Ltd shares between December 1 and December 30, 2021. Each of the nine directors, including Chairman and Independent Director TIM Nurul Kabir, Vice Chairman Prince Mojumder, and Acting Managing Director & CEO Shah Jalal Uddin—was fined Tk 1.03 crore, while Genex Infrastructure Ltd was fined Tk 2.55 crore. The regulator further identified serious irregularities in audited financial statements of companies such as Suhrued Industries Ltd (FY2019), Ring Shine Textile Ltd (FY2017-2020), Aman Cotton Fibrous Ltd (FY2020), and Fareast Islami Life Insurance Ltd (FY2018-19). Audit firms including A Haque & Co, Ahmed & Akhtar, Mahfel Haque & Co, Ata Khan & Co, Shiraz Khan Basak & Co, and Islam Kazi Shafiq & Co failed to disclose these irregularities. Consequently, BSEC issued show-cause notices seeking explanation on why these auditors should not be barred for five years from auditing listed companies, investment schemes, and capital market intermediaries, according to a press release. BSEC said these stringent measures aim to uphold transparency, accountability, and investor protection in Bangladesh’s capital market.

Bangladesh’s capital market is regaining momentum, attracting major investors amid rising trading activity and a sharp increase in Beneficiary Owner (BO) accounts over the past year, according to the Bangladesh Securities and Exchange Commission (BSEC). While some quarters have suggested that investor participation in the stock market is shrinking, official data tells a different story. Recent BSEC statistics indicate that while small investors are gradually pulling back, the presence of high-net-worth individuals and institutional investors has strengthened significantly. The number of portfolios valued between Tk 50 crore and Tk 500 crore has seen a marked increase compared to June 2024. Similarly, portfolios exceeding Tk 50 lakh have also gone up, pointing to a clear shift in investment patterns toward larger stakes. Retail participation, particularly investments below Tk 1 lakh, has, however, dipped. As of June 30 this year, the number of portfolios below Tk 1 lakh stood at 831,748, down from 916,157 in the same period last year. Rise in Millionaire Investors BSEC data further reveals a steady growth in the number of millionaire investors. Sikder Group issues clarification on freezing of its BO accounts In June 2024, 12993 investors held portfolios valued over Tk 1 crore. That number has now risen to 13316. Although portfolios above Tk 10 crore have declined slightly, portfolios valued over Tk 50 crore have increased. In June last year, there were 696 investors in the Tk 50 crore-plus category; the number has now climbed to 733. The number of investors with holdings over Tk 100 crore has gone up by 22, and portfolios exceeding Tk 500 crore have increased by two. Market insiders say large investors are holding firm, driven by the belief that the market will recover over time. "Unlike small investors who are more vulnerable to market shocks, large investors are committed for the long term. They understand that patience in the capital market pays off," said Asad Mia, Branch Manager at Global Securities in Motijheel. Echoing this, Tarek Hossain, a veteran investor with nearly a decade of experience, noted, "Small investors tend to trade frequently for short-term profits, while big investors invest in fundamentally strong companies and stay invested for years, riding out temporary downturns." Demand for Quality IPOs Despite the ongoing recovery, the market has yet to witness the listing of any major fundamentally strong company over the past year. However, efforts are underway to change that, officials say. Dr. Anisuzzaman Chowdhury, Special Assistant to the Chief Adviser said the government is preparing a list of both state-owned and private companies to engage them in discussions about potential market listings. Number of  BO accounts increased  in August "Improving market surveillance is equally important. Strong oversight will deter manipulative activities and help restore investor confidence," he added. Abu Ahmed, Chairman of the Board of Directors at the Investment Corporation of Bangladesh (ICB), stressed the importance of quality listings. “One good company can change the entire market sentiment. We must also consider bringing in multinational firms alongside domestic entities,” he said. BSEC Chairman Khondoker Rashed Maqsood reaffirmed the Commission’s commitment to listing high-quality companies, and emphasised implementing taskforce recommendations to ensure sustainable growth in the capital market.

The Dhaka stock market gained ground with most shares edging up, while the Chattogram market declined on Wednesday, the fourth trading day of the week. In the first hour of trading, the benchmark DSEX index of the Dhaka Stock Exchange (DSE) rose by 7 points. The Shariah-compliant DSES index gained 3 points, while the DS30 index, which tracks blue-chip companies, edged up by 2 points. Share prices increased for the majority of companies on the DSE. Out of the traded scrips, 155 companies posted gains, 105 saw a decline, and 114 remained unchanged. During the initial hour, the total turnover in Dhaka crossed Tk 80 crore in shares and mutual fund units. Market swings amid volatile trading at DSE and CSE In contrast, the Chattogram Stock Exchange (CSE) saw a 14-point drop in its overall index. Among the 73 companies that participated in trading on the CSE, prices rose for 26, fell for 34, and remained unchanged for 13. The CSE recorded trades worth over Tk 1 crore in the first hour.

Trading on Bangladesh’s stock markets resumed on a downward trend on Saturday, following a 10-day closure for Eid-ul-Azha, with both the Dhaka and Chattogram bourses witnessing a fall in key indices and a majority of listed companies seeing price drops. During the first hour of trading, the benchmark index of the Dhaka Stock Exchange (DSE) fell by 26 points. The other two indices—the Shariah-based DSES and the blue-chip DS30—also declined by 8 points each. Right from the opening, most shares on the DSE were in the red. Out of the traded securities, prices fell for 212 companies, rose for 46, and remained unchanged for 50. Turnover during the opening hour stood at Tk 30 crore. Stock markets in Bangladesh end on high note ahead of Eid holidays Chattogram Stock Exchange (CSE) also opened on a similar note, with the overall index dropping by 44 points. Out of the 17 companies that participated in early trading on the CSE, share prices rose for 7, declined for 8, and remained unchanged for 2. CSE’s early turnover stood at approximately Tk 9 lakh in shares and units.    

Bangladesh Securities and Exchange Commission (BSEC) Chairman Khondoker Rashed Maksud on Tuesday welcomed the proposed budget, saying it reflects the government’s sincere and constructive approach to capital market development by giving due emphasis on crucial sectoral issues. In a written statement in response to the new budget, Rashed Maksud said Chief Adviser Dr Muhammad Yunus' five-point directives over the capital market were prominently incorporated in the budget speech delivered by Economic Adviser Dr Saleh Uddin Ahmed. Among these directives were the direct listing of multinational companies in the capital market and the enlistment of strong, fundamentally sound local companies. In addition, the directives called for appointing foreign consultants to implement essential reforms, taking strict actions against irregularities and misconduct by market-related entities and individuals and providing policy support from the government to position the capital market as a central pillar of the future economy. Reflecting these directives, the Ministry of Finance has proposed widening the corporate tax gap between listed and non-listed companies from 5 per cent to 7.5 per cent. As a result, companies listed on the stock market will benefit from a lower corporate tax rate. Dhaka stocks extend losses, Chattogram index edges up The BSEC chairman expressed the hope that this move would encourage both domestic and foreign profit-making companies with strong fundamentals to become listed. To stimulate trading volume in the market, the transaction tax on brokerage houses has been reduced from 0.05 per cent to 0.03 per cent. Maksud noted that the capital market is currently facing liquidity constraints and low trading volumes, and he hoped this tax relief would encourage greater investor participation and enhance trading activity. Merchant banks, considered crucial stakeholders in the market, have also received incentives, he said. Highlighting their role in ensuring a sustainable supply of quality shares, the Chairman noted that the corporate tax rate for merchant banks has been reduced by 10 percentage points—from 37.5 per cent to 27.5 per cent. He believes this will further encourage merchant banks to contribute to capital market development. In a move to protect investors’ interests, the chairman recalled a key decision made shortly after the interim government assumed office on 4 November last year. The National Board of Revenue (NBR) issued a directive to reduce the capital gains tax from the sale of shares of listed companies. The maximum tax rate was halved from 30 per cent to 15 per cent. Rashed Maksud considered this a clear sign of the government's commitment to the capital market.

The country’s stock markets opened the week on Sunday on a positive trajectory, with key indices recording gains and a majority of companies witnessing price increases. On the Dhaka Stock Exchange (DSE), the benchmark index DSEX rose by 25 points. Meanwhile, the Shariah-based index DSES gained 5 points, and the blue-chip index DS30 added 12 points. Most of the participating companies saw a rise in share prices. Out of the traded issues, prices increased for 232 companies, declined for 79, while 86 remained unchanged. In the first two hours of trading, shares and units worth over Tk 90 crore were exchanged on the Dhaka bourse. Stocks slide sharply in early trading at DSE, CSE Meanwhile, the Chattogram Stock Exchange (CSE) also reported gains, with the overall index climbing 30 points. Out of the 70 companies that took part in trading on the CSE, 34 saw price increases, 22 recorded declines and 14 remained unchanged. During the first half of the session at the CSE, shares and units worth over Tk 4 crore were traded.

The Bangladesh Securities and Exchange Commission (BSEC) has announced it will take action against listed companies that have declared dividends but failed to distribute them among investors. In an official statement on Wednesday signed by BSEC Director Md Abul Kalam, the capital market regulator disclosed that it has initiated discussions with 22 such companies to address the matter. BSEC denies share trading allegation against commissioner The meetings involve top executives of the companies, who have been asked to explain why dividends were announced but not disbursed. The BSEC has instructed the companies to resolve the ongoing issues preventing them from paying out dividends. Besides, the commission said punitive measures under securities laws have already begun against firms that have withheld investors' dividends. Meanwhile, investors continue to suffer amid a five-day losing streak in the stock market. Those who have invested using margin loans are facing the worst impact. In recent days, investors have staged human chains, protests and symbolic coffin processions in front of brokerage houses in Motijheel, demanding immediate intervention. Despite these demonstrations, the situation remains unresolved. Investor associations have confirmed that the commission has called for a meeting with them on Thursday, 29 May. 21 BSEC officials suspended, chairman calls for unity Following the discussion, the BSEC has assured that steps will be taken to improve the state of the capital market.

After a brief positive start, both Dhaka and Chattogram stock markets saw a sharp decline in the first two hours of trading on Tuesday, with all major indices falling. At the Dhaka Stock Exchange (DSE), the key index DSEX lost 28 points. The Shariah-based DSES index slipped 5 points while the blue-chip DS30 index dropped 9 points. Of the issues traded, prices advanced for 88 companies, declined for 229 and remained unchanged for 75. Turnover on the DSE crossed Tk 100 crore during the two-hour window. Market swings amid volatile trading at DSE and CSE Over at the Chattogram Stock Exchange (CSE), the overall index fell by 67 points. Out of 126 companies traded on the CSE, prices rose for 30, declined for 75 and remained unchanged for 21. The turnover in Chattogram crossed Tk 4 crore halfway through the trading session.

Trading at both the Dhaka and Chattogram stock exchanges began at a sluggish pace on the second working day of the week on Sunday, with the Dhaka market showing a rise in its index while the Chattogram market remained largely unchanged. At the Dhaka Stock Exchange (DSE), the benchmark index DSEX rose by 13 points in the opening hour. Among the other two indices, the Shariah-compliant DSES gained 3 points, and the blue-chip DS30 index increased by 1 point. A majority of the listed companies saw their share prices rise. Of the traded issues, prices advanced for 177 companies, declined for 114, while 78 remained unchanged. The total turnover at the DSE crossed Tk 75 crore in the first hour. Market swings amid volatile trading at DSE and CSE At the Chittagong Stock Exchange (CSE), the overall index showed a marginal gain within the decimal range. Out of the 62 companies that traded on the CSE, share prices increased for 28, declined for 26, and remained unchanged for 8. The turnover at the CSE exceeded Tk 1 crore during the first hour of trading.

Trading in the country’s two major bourses – Dhaka and Chattogram – began on a positive note on Wednesday, the fifth working day of the week, with indices gaining and share prices of most companies edging up in the first hour. At the Dhaka Stock Exchange (DSE), the key index DSEX rose by 15 points at the start of the session. Of the other two indices, the Shariah-based DSES gained 4 points, while the blue-chip index DS30 advanced by 9 points. During the first hour of trading, share prices increased for the majority of the listed companies. Of the issues traded, the prices rose for 236 companies, declined for 78, and remained unchanged for 62. Market swings amid volatile trading at DSE and CSE The total turnover on the DSE crossed Tk 90 crore in the first hour. Over at the Chattogram Stock Exchange (CSE), the overall index increased by 8 points. Among the 75 companies that saw trading activity on the CSE during the same period, the prices went up for 37, declined for 19 and remained unchanged for 19. The CSE's turnover in the first hour surpassed Tk 2 crore.