PM intervention sought to stabilise stock market

Seeking an intervention to prevent the country’s capital market from a constant free fall, the Bangladesh Capital Market Investors Unity Council gave Prime Minister Sheikh Hasina a memorandum on Sunday.

The memorandum comprised of a 12-point demand sought actions form the government to overcome the constant price fall in the country’s stock market.

General investors requested immediate action from the government ends to restore confidence among investors, according to the Unity Council.

According to protestors, the capital market’s current situation was a part of a deep conspiracy, and the government should take necessary steps to stabilise the market.

To address the current market situation, the first demand of the Unity Council was to provide a special allocation of Tk 10,000 crore at a 3 per cent interest rate to the general investors.

The allocation would allow investors to invest as a loan at a 5 per cent interest rate through various financial institutions, including the Investment Corporation of Bangladesh, merchant banks, and broker housing, they said.

They also demanded a new rule seeking at least 10 per cent of share uploading against the paid off capital of each company to raise money through IPO.

In addition, they demanded that directors of all listed companies be required to hold a minimum of 30 per cent of the company’s shares and 2 per cent of each share, as required by Section 2CC of the Companies Act and the High Court.

In order to support the stability of the capital market, they also asked for the complete repeal of the dividend tax and the passage of the ‘Buyback Act’.

The Buyback Act would require the company’s board of directors to repurchase shares at the issue price or, if that price is higher, at the lower of 5 per cent of the NAV.

Moreover, the investors’ group additionally urged the government to set up a new unit to stop manipulation and ensure good governance and stability in the capital market.

The officers of DGFI, NSI, and SB will be attached to the new unit, which will be directly headed by the Chairman of the Bangladesh Securities and Exchange Commission.

However, the current situation is a matter of concern for the investors and needs to be addressed immediately.