‘Coordination among relevant regulators key to develop stock market’

Bangladesh Securities and Exchange Commission (BSEC) Commissioner Shaikh Shamsuddin Ahmed has emphasised coordination among the relevant regulators for the development of the stock market.

He remarked at an event in a hotel in Dhaka on Monday.

The BSEC commissioner recommended that Bangladesh Bank needs to coordinate with the other relevant regulators before making any policy related to the financial markets for the betterment of the country’s economic development.

“If BB gives attention to framing any policy targeting the capital market, it will hurt the stock market,” he said.

About the Thursday and Sunday stock market plunge when the benchmark DSEX index shed 272 points, he said the media mentioned two reasons--one is the Russia-Ukraine war, and another is negative equity.

“But Russia-Ukraine conflict has no direct impact on the capital market. Our trade relation with Russia or Ukraine is not worthy to mention,” he said.

About the negative equity that existed in some brokerage firms and merchant bankers, the BSEC wants the stock market free from negative equity. “Time was given to the market intermediaries to adjust the negative equity. So, it will not bring any harmful impact to the capital market,” said Shamsuddin Ahmed.

The current commission would not take any decision that would hurt the investors, he said.