The benchmark index of the stock markets plunged into losing territory last week as investors became anxious about the market’s momentum. The jittery investors continued to offload their shares amid repeated regulatory actions against stock manipulations. Market analysts attribute the recent decline in stock market activity to a combination of factors, including waning investor confidence and heightened uncertainty. This sentiment was further dampened by the recent imposition of significant fines on several market manipulators. In a bid to curb market manipulation and instill discipline, the Bangladesh Securities and Exchange Commission (BSEC) levied fines totaling approximately Tk 2.70 billion on multiple entities in two phases this week. Additionally, the BSEC has ordered a special audit of three major concerns within the Beximco Group. These latest regulatory actions are part of a broader effort to restore integrity to the capital market. As a result, the market witnessed a continuous selling spree throughout the week, while the news of the disbursement of the Tk 3,000 crore sovereign-guaranteed loan to ICB also failed to subside the prevailing pessimism pervading the trading floor, leading the bears to take control of the market momentum. In the last week, DSEX, the broad index of the Dhaka Stock Exchange, lost 91.4 points, or 1.8 percent, to settle at 5,105 points. Investors' participation in the market also declined by 27.5 percent to Tk3, 22.2 crore as compared to Tk381.3 crore in the previous week. DSE trading ends on downtrend; index drops by 19.06 points Investors were mostly active in Pharma sector at 17.3 percent, followed by Textile sector at 16.3 percent and Bank sector at 10.9 percent. All the sectors, except textile 0.6 percent, ended in red with Paper sector minus -6.2 percent being the biggest loser. Last week, the stock market experienced a significant decline, with the market capitalization shedding Tk11200 crore to reach Tk 6,52400 crore on Thursday. A sell-off of large-cap stocks primarily drove this downturn. A notable contributor to the market's decline was Islami Bank, whose stock price plummeted over 11 percent to close at Tk 45.6 on Thursday. This single stock accounted for a 42-point drop in the key index. Other significant decliners. Most of the traded stocks saw price erosion, as out of 392 issues traded, 293 closed lower and 76 ended higher, while 23 others remained unchanged. Orion Infusion was the most-traded stock with shares worth Tk 1.11 billion changing hands, followed by Dragon Sweater, Asiatic Laboratories, Lovello Ice-Cream, and Saiham Cotton Mills. 18 banks at risk due to potential loan defaults by top 3 borrowers: Bangladesh Bank The Chittagong Stock Exchange (CSE) also ended lower, with the CSE All Share Price Index (CASPI) losing 277 points to settle at 14,304 and its Selective Categories Index (CSCX) shedding 169 points to close at 8,702. The port-city bourse traded 1.30 crore shares and mutual fund units with a turnover value of Tk 27 crore.  

Chairman of the Bangladesh Securities and Exchange Commission (BSEC), Khondoker Rashed Maqsood, emphasized the need for active cooperation from all stakeholders to drive the development and reform of the country’s stock market.   During a meeting with top representatives of the DSE Brokerage Association (DBA) on Monday at the BSEC headquarters in Agargaon, Dhaka, the Chairman called for coordinated efforts from all institutions involved in the stock market to support ongoing reform initiatives.   The BSEC has recently formed a task force to spearhead stock market reforms, and the task force has already begun its work, according to a press release from the commission. Maqsood stressed the importance of collaboration between the BSEC and other market participants to build a sustainable and prosperous stock market for the future.  

Investors of the Dhaka Stock Exchange (DSE) have called for the resignation of Bangladesh Securities and Exchange Commission (BSEC) Chairman Khondoker Rashed Maqsood, citing his inability to manage the volatile stock market. The demands came after share prices of various companies plummeted, prompting widespread frustration among investors. Many blamed the BSEC chairman for failing to provide necessary support to institutional investors, which they claim has led to market instability. Protesters demanded a task force, like the one formed for the banking sector, to investigate the irregularities. They rallied outside the old DSE building in Motijheel on Thursday morning. Read: Stock market bullish on second day of lifting floor price Protestors marched from Motijheel to Agargaon, eventually staging a sit-in outside the BSEC headquarters, reiterating their demand for Maqsood’s resignation.  On Wednesday, at around 4:30 pm, investors from various organizations gathered outside the Investment Corporation of Bangladesh (ICB) and announced the ‘Long March’ to pressure the regulatory body. Read more:Dhaka Stock Exchange gains Tk 6,749 crore in market capital Earlier that day, members of the Bangladesh Capital Market Investors Oikya Parishad had formed a human chain in front of the old DSE building, underscoring the growing frustration with the market regulator.     

Bangladesh Securities and Exchange Commission (BSEC) has fined 9 investors Tk 428.52 crore for manipulating the shares of Bangladesh Export Import Company Limited (Beximco) listed in the stock market. The BSEC decided to impose this fine in the commission meeting held on Tuesday chaired by BSEC Chairman Khondoker Rashed Maqsood. Such a large amount of money has never been fined in the history of the country's stock market for manipulating the shares of a company, stock market stakeholders said. BSEC instructs DSE to investigate unusual price surge of Islami Bank shares Among them, Marzana Rahman was fined Tk30 crore, Trade Next International Tk4.1 crore, Mushfiqur Rahman Tk125 crore, Mumtazur Rahman Tk58 crore, Jupiter Business Tk22.50 crore, Apollo Trading Tk15.1 crore, ART International Tk70 crore, Abdur Rauf Tk31 crore and Crescent Limited was fined Tk 73 crore. Meanwhile, the commission meeting decided to inspect the use of IPO/RPO’s funds of 9 companies. The nine companies include- Bangladesh Shipping Corporation, Best holding, Index Agro, JMI Hospital Requisite Manufacturing, Lub-rref (Bangladesh) Limited, Navana Pharmaceuticals, Ring Shine Textiles, Sikder Insurance and Silva Pharmaceuticals.

Small investors in the stock market are frustrated as their wait for a good time gets delayed by the Bangladesh’s ongoing political unrest. The political impasse over who should oversee the upcoming national polls is thwarting the stock market’s recovery from Covid-19 pandemic and the Ukraine-Russia war. The small investors’ shares are stuck on the floor price (minimum sale rate) and overall economic downfall. This has been painful for many unfortunate small investors of the capital markets, according to market analysts. Policymakers and the Bangladesh Securities and Exchange Commission (BSEC) paint a rosy picture for small investors saying that stock markets will rebound with enlistment of new companies and injection of big investments. But the situation for the small investors seems to be hopeless. Read: Economy buffeted by political unrest amid declining forex reserves: Analysts A large number of shareholders have remained stuck with their investment in the capital market for over a decade amid fading hopes. “No one, not even the regulator or stock market authorities pay heed to their screams,” Abdul Latif, a grocery owner and one of the affected investors, told UNB in a broken voice. He said he invested Tk13 lakh in 2011 to buy shares of different companies listed in Dhaka Stock Exchange (DSE). After graduation in 1998 Latif found no suitable job and then started a small business in the Motjheel area in 2002 with support from his father-in-law. He made a good profit in the business and invested money in the share market. In 2010 Latif invested around Tk13 lakh of which 5 lakh was his own and 8 lakh borrowed from relatives. All of his investment was stuck in shares of different companies due to a big scam in the capital market in 2011. Read: Govt aims to collect 11.2% of GDP in taxes by FY 2025-26 Like Latif, thousands of investors lost their hard-earned capital in 2011, and after that, some were able to gain part of the capita. But most of them left the capital market losing nearly all investment. Many of such investors are still in the market hoping for a rebound in the DSE, but without any good news. There is no sign of lifting the floor price before the next election. However, economists say that people do not have confidence in the market. BSEC advises investors to be patient until the general election is held by January next. Dr ABM Mirza Azizul Islam, an economist and a former adviser of a caretaker government, told UNB that there has been a crisis in investors' confidence in the stock market for a long time. “To this are added various economic crises, the international situation, and everything including elections and national politics,” he said. Read: Despite challenges, govt hoping to restore economy’s pre-Covid momentum in current fiscal As a result, first of all, steps should be taken to eliminate the trust crisis. In this case, trust should be ensured by establishing good governance, he said. That is, the investors have to be given the assurance that if someone steals their money through manipulation, they will be prosecuted. Besides, the supply of good shares should be increased. Through these two steps, it is possible to eliminate the market problem. But it is not easy at all, said Dr Azizul Islam. Dr Abu Ahmed, former professor of Dhaka University’s Economics Department, said there are two crises in the market: one on the demand side and the other in investor confidence. On the supply side, the problem is that there are fewer good companies. As a result, it is a win-win situation for manipulation and syndicates, he said. Read: Country’s first electrical testing laboratory on the cards All in all, the stock market is currently in an unstable condition and gradually the situation is getting worse. The passage from here is very difficult, he said. According to market insiders, the stock market situation is in a dire. The situation is not improving due to political uncertainty ahead of national elections, increases in commodity prices, and various international issues. The market has lost its importance to the government as well. For those who are not directly involved with government policymakers, the stock market is a source of irritation. Their thinking is like this - if there is no stock market, there will be no problem in the country. For these reasons, the government wants to hold the market with floor prices until the next national election. This brings an opportunity for syndicates blessed by the regulatory body to be controlling the market, the market insiders said. They spoke on condition of anonymity. BSEC Chairman Professor Shibli Rubayat Ul Islam told UNB in this regard that the global situation is not in the hands of the regulator or the government. Investors should beware of investing with any company depending on rumours. He also said due to a lack of financial literacy, people are sometimes investing in weak shares with an expectation of big profit which is not the right way of investment. Read: BSEC sits with stock market stakeholders Thursday after drastic fall of share prices

Prime Minister Sheikh Hasina on Wednesday (August 23, 2023) invited South African entrepreneurs to make investments in Bangladesh that seeks to become a trillion-dollar economy and a fully developed smart nation by 2041.“Bangladesh progresses toward prosperity. We want you to join our journey of development. Do invest in Bangladesh; we are confident that your investment will be primed for success, and we are fully prepared for a sustainable partnership,” she said.The prime minister was speaking at the Bangladesh Trade & Business Summit in South Africa jointly organised by Bangladesh Securities and Exchange Commission (BSEC) and Bangladesh Investment Development Authority (BIDA) at the Radisson Blu Hotel and Convention Center.“I have a dream; the 170 million people of Bangladesh have a dream. And that is to become a trillion-dollar economy and a fully developed smart nation by 2041,” she added. Read: PM Hasina reaches Johannesburg to attend BRICS summitHasina assured that investment in Bangladesh is secure due to consistently high returns.“Moreover, our government ensures a business-friendly and stable atmosphere that guarantees your investment’s success," said the PM.She confidently stated that Bangladesh promises a secure and prosperous future for global investors.Currently, she mentioned, Bangladesh has the most open Foreign Direct Investment policies in South Asia which include a liberalised industrial policy, one-stop service, an allowance for 100 per cent foreign ownership, an easy exit policy, a 15-year tax exemption, a VAT exemption for imported machinery, streamlined services, and more. Read: Bangladesh progressing well overcoming natural, manmade disasters: PM“We welcome investors worldwide, particularly from South Africa, to explore the numerous investment prospects within Bangladesh. This is the perfect time to acquaint yourselves with what Bangladesh offers. This is the time to know Bangladesh better and to invest in its future,” she said.The prime minister said that over the last five decades, Bangladesh and South Africa have built a strong and friendly relationship based on mutual respect, shared values, cultural ties, and common beliefs.She said that this bond has been strengthened by growing trade connections. Both countries have similar paths of development, making collaboration and growth feasible.But, she mentioned that despite the significant potentials, the bilateral trade between Bangladesh and South Africa was only USD 316.83 million last year, falling short of its full potentials.“This presents a promising opportunity for collaboration, given the export and import potential of both nations,” she said.PM Hasina said that she is confident that ample collaboration opportunities exist for both nations, involving business communities and trade organisations. Read: I want to make everyone’s life meaningful, declares PM Hasina after launching Universal Pension Scheme“Beyond existing bilateral mechanisms, we're enthusiastic about establishing a 'Joint Committee on Trade and Investment' and negotiating a 'Double Taxation Avoidance Agreement with South Africa'.”She said that Bangladesh offers opportunities across sectors like ICT, electronics, infrastructure, textiles, tourism, heavy industry, and small industries.“Our government is committed to facilitating smooth business operations. Bangladesh is ready to welcome prospective South African investors," she told the conference.She said that organisations like the Bangladesh Investment Development Authority, Bangladesh Economic Zone Authority, Bangladesh Export Processing Zone Authority, Bangladesh High Tech Park Authority, and Bangladesh Securities and Exchange Commission, all support foreign investors for optimal returns.She said that as the growing economy, Bangladesh is poised for substantial long-term financing. Amid the 4th Industrial Revolution, AI, and Venture Capital, Bangladesh is pursuing "Financial Connectivity" globally, prioritizing "Investment Banking" over traditional Consumer Banking. Read: Some foreign powers are taking interest in Bangladesh's election to hinder progress: PM HasinaIn this connection, she said that the Bangladesh Securities and Exchange Commission (BSEC) is elevating the capital market for essential long-term financing. In 2020, the stock markets outperformed regional peers, with USD 61 billion in market capitalisation, or 16.8 per cent of GDP.For financial progress, Sheikh Hasina said, we have expanded our bond market, introducing Sukuk, Green Bonds, ETFs, Venture Capital, Private Equity, and Impact Funds, diversifying investment opportunities. Soon, we are going to include derivative products in our capital markets, which will help minimize investment risks through hedging.Portfolio investments have also been made flawless through enhanced facilities for repatriation of the principal and returns without any kind of approval, she added. Read: PM Hasina places wreaths, offers prayers to pay homage to Bangabandhu in TungiparaShe said that the significant Bangladeshi population in South Africa forms a strong base.“Thanks to expatriates for contributing to our economy. We urge you to invest more in our growth," she said.She also said that a joint business forum between the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and the South African Chamber is also planned.The prime minister said that the robust private sector of Bangladesh will keep providing a great range of opportunities for those who invest in country’s economy.“We are confident that we are heading full speed forward on the path of the 4th industrial revolution.”Terming people of the country as the heart of strength, she said that about 55 million youth with the requisite skills are committed to accomplishing the task ahead. Read: PM to inaugurate Karnaphuli Tunnel on Oct 28: Quader“Our fortunate position is enhanced by connections on both regional and global levels. Additionally, a growing domestic market and an expanding consumer class further strengthen this demographic benefit," she said.She said, with a population exceeding 1.5 billion, South Africa is currently experiencing rapid urbanisation and economic growth.“This provides favorable opportunities for Bangladesh to expand its exports, particularly in sectors like textiles, ready-made garments (RMG), pharmaceuticals, and agricultural products.”She mentioned that in the past decade, Bangladesh has shifted its focus towards untapped markets in Africa. Both government officials and business leaders in Bangladesh recognise the potential of African economies and the benefits of stronger trade relationships.“With a growing middle class, an increasing population, and rising consumer demands, Africa becomes an attractive market for Bangladeshi exports," she stated.Hasina said that to fortify its diplomatic connections and pave the way for future economic openings, Bangladesh has formally adopted the 'Look Africa' policy. Read: UK keen to boost trade and investment with Bangladesh: Sarah Cooke tells PM Hasina“Simultaneously, Bangladesh is actively exploring avenues to procure essential natural resources and raw materials from African nations," she said.This category includes the requisite raw materials for Bangladesh's growing industries, spanning minerals, petroleum products, cotton, agricultural products, and more, she said. The Prime Minister said that the government is establishing 100 Special Economic Zones, 109 Hi-Tech and Software Technology Parks, and IT Training and Incubation Centres across the country to facilitate commerce and industrialisation. Read: PM Hasina writes to US President Biden expressing deep sadness over Maui wildfire devastation “The recent inauguration of the Padma Bridge and Matarbari Deep Sea port will further amplify both external connectivity and internal trade, thus acting as catalysts for growth.” Minister of Public Works and Infrastructure, South Africa Sihle Zikalala spoke at the event.Foreign Minister Dr AK Abdul Momen and Prime Minister's Private Investment and Industries Affairs Adviser Salman Fazlur Rahman were, among others, present at the venue. BIDA Executive Chairman (Senior Secretary) Lokmn Hossain Miah was also present while Chairman (Senior Secretary) of Bangladesh Securities and Exchange Commission (BSEC) Professor Shibli Rubayat-Ul-Islam gave brief descriptions about Bangladesh's economy and the government's efforts to expedite  foreign direct investment in Bangladesh.

In a move towards developing Shariah-based capital market Bangladesh Securities and Exchange Commission (BSEC) has formed a nine-member council to advise it on this subject. The decision came recently at the market regulator’s 848th meeting, Rezaul Karim, executive director and spokesperson of BSEC, told UNB. "Through the formation of Shariah Advisory Council, the opportunity to bring Islamic Shariah-based securities to the capital market of Bangladesh will be strengthened,” he said. He said domestic and foreign investors interested in Shariah-based securities will be more interested in investing in the capital market. Read more: BSEC working to enhance financial literacy for capital market investors: Prof Shibli The advisory council has been set up under rules of 'Bangladesh Securities and Exchange Commission (Securities Market Shariah Advisory Council) Act-2022. The council will advise the BSEC on the formation of Islamic Capital Market including different types of Islamic Shariah-based securities issues. For example, formulation of Shariah-related guidelines, formulation of standards for Islamic Shariah-compliant securities, whether any securities are Shariah-compliant or not, this council will give opinions according to the needs of the commission. There will be 5 Shariah scholars and 4 experts as members of the Commission's Shariah Advisory Council. In light of this principle, the BSEC decided to make Professor Dr. Mohammad Abdur Rashid the chairman of the council. The selected 5 members of Sharia scholars are - Professor Dr. Mohammad Abdur Rashid, Mufti Shahid Rahmani, Mufti Yusuf Sultan, Mufti Dr. Waliur Rahman Khan (Representative of Islamic Foundation), and Maulana Shah Wali Ullah. Read more: Under, over-invoicing to stop if commodity exchange is launched: BSEC Chairman On the other hand, 4 expert members are - Finance and Banking Expert Prof. Abu Taleb, Legal Expert AKM Nurul Fazal Bulbul, Accounting Expert Prof. Md. Nazim Uddin Bhuiyan, and Capital Market Expert Mejbah Uddin Ahmed. As per the rules, the BSEC will nominate the members of the Council. And the chairman will be elected by the vote of the council's Shariah betta (Shariah knowledge experts). The tenure of the members, including the chairman of the council will be 3 years. A member may be nominated for two consecutive terms. However, BSEC can re-nominate any person as a member of the Council after two terms with a gap of one term.

The market capitalisation of the Dhaka Stock Exchange (DSE) increased by Tk4.47 lakh crore in the outgoing year 2022, as the 250 treasury bonds started trading in the DSE. Although the index and the share price of most of the companies fell, the market value of 250 treasury bonds and Islamic Sukuk bonds started trading in the capital market for the first time in the DSE. DSE data shows DSE started trading in 2022 with a market capitalization of Tk 3.14 lakh crore. Then on October 10, 2022, 250 government securities were listed on DSE. The market cap stood around Tk7.73 lakh crore. The market cap slightly decreased to Tk7.61 lakh crore at the end of the year. Read more: Shakib’s company involved in share manipulation, DSE investigation finds Among the transaction, the trade volume of the block market was Tk14253.19 crore, which is 6.4 percent of the total transaction. This ratio was 3.97 percent of the total transaction in the previous year. The transactions in the block market have increased compared to the previous year (2021). The investors in the capital market passed another year, along with frustration and uncertainty in the capital market due to the global recession, which erupted from the Covid-19 pandemic and the Ukraine-Russia war. Chairman of the Bangladesh Securities and Exchange Commission (BSEC) Professor Shibli Rubayat –Ul-Islam told UNB that the regulator is working to improve the market situation through diversified products. Read more: DSE share trading between 10am and 2:30pm from tomorrow “But the global situation, which is beyond our control, has created uncertainty in several sectors including capital market,” he said.

The chairman of the Bangladesh Security and Exchange Commission (BSEC) Prof Shibli Rubayat-Ul-Islam has said that the capital market regulator is working to enhance the public's financial literacy so they can invest consciously and profitably. To this effect, the BSEC is cooperating with the Ministry of Education and the National Curriculum and Textbook Board (NCTB) to include a chapter on the capital market in the secondary and higher secondary levels textbooks. Talking to UNB, Prof Shibli acknowledged that sometimes people are being influenced to invest their hard-earned money or chasing misinformation.  "If they can become financially literate, then no one can cheat them," he said. Read more: Under, over-invoicing to stop if commodity exchange is launched: BSEC Chairman With a nationwide average of 24.6 percent, the financial literacy score in Bangladesh is still quite low, according to a recent survey by the Bangladesh Bureau of Statistics and Brac Business School. Respondents with an educational qualification below SSC, people aged over 50, self-employed people, Dhaka natives, housewives, and farmers have the lowest scores, according to the 2022 survey report. The BSEC is working to introduce real estate investment trust, or REIT, Pink, and Orange bonds in the capital markets by 2023. Through Pink bonds, small entrepreneurs can collect money for investment while SMEs and large entrepreneurs can collect money through Orange bonds.  Both the coloured bonds will be introduced to encourage women investors as well as empowering them in the financial sector, Prof Shibli said. Read more: Visiting IMF team will meet BSEC to discuss capital market on Nov 7 Besides, the BSEC has a special bond plan for the garment and textile sector so that the entrepreneurs can collect money from the capital market to expand their business. At the same time the investors will encourage investment in this secured sector, he said. Prof Shibli said the country’s development projects cannot be completed depending on revenue only - project-based infrastructure bonds and municipal bonds for fund collection from the stock market would be a diversified funding scope for development. If the project authority provides dividends of around 12-13 percent, then people will invest money in the project-based bond market instead of depositing their money in FDRs and saving certificates, he said. He said Bangladesh’s investment demand is over USD $800 billion for infrastructure and other service sector development in line with LDC graduation, which will not be possible to collect from domestic sources. But a large portion is possible through the capital market. Read more: Takes 6-12 months to identify a share market manipulator in existing system: BSEC Chairman Replying to a question he said that investors who have the patience to invest in the capital market and who want to secure investment scope should invest in the bond market and get greater dividends than their returns from IDFs and saving certificates. Mutual funds, Treasury bonds’ and others are trading in the capital markets, where anyone or ordinary people can invest money. He said that the mutual funds are providing dividends of around 10 to 20 percent  during the last 10/12 years. "Those who have financial knowledge can invest in secondary share trading, and try to gain profit. They should prefer bonds and mutual funds," the BSEC chairman said. The regulator has pushed through dozens of reforms in the capital market, from imposing company audit systems and towards accountability of brokerage houses during his tenure. As a result, the capital market will be  well-positioned in the future. Read More: Financial literacy: BICM reduces master's program fees by 50% “We just planted the seed, from which the tree or plant will be visible within the next few years,” Prof Shibli said.

Share trading of Dhaka Stock Exchange (DSE) will be held as per the new office schedule – from 10am to 2:30pm – from Tuesday, an official notification said. The Deputy General Manager of DSE, Shafiqur Rahman, told UNB that as per the directive of the Bangladesh Securities and Exchange Commission (BSEC), the new trading schedule will be in effect from Tuesday. The BSEC instruction stated that from November 15, 2022, share trading will start at 10am and will continue till 2:30pm. There will be a 10-minute post-closing session. All trading will have to be completed by 2:30pm. There will also be a pre-opening session from 9:55am to 10pm. Read more: Experts urge government to turn DSE into public university Meanwhile, along with the transaction of DSE, the official time schedule has also changed. On Tuesday, the official function will start at 9am and continue till 4:30pm. The Chittagong Stock Exchange (CSE) will also follow the same time scheduled for trading. Read more: Shakib’s company involved in share manipulation, DSE investigation finds