Investors have called for the resignation of Bangladesh Securities and Exchange Commission (BSEC) Chairman Khandaker Rashed Maksud, criticizing his inability to take effective decisions regarding the stock market and failing to bring it back to a positive trajectory. According to the investors, managing a bank is vastly different from running the stock market, which involves various stakeholders. They accused Maksud of making unilateral decisions without consulting key parties.
This demand was raised during a press conference held on Saturday (September 28) under the banner of the ‘Bangladesh Capital Market Investors’ Unified Council.’ The council expressed deep dissatisfaction with the chairman’s performance.
In a written statement, the council’s president, Ataullah Naim, claimed that certain individuals who benefited from the previous government have infiltrated key institutions of the capital market. He suggested that their involvement may be aimed at destabilizing the market and embarrassing the current government. Naim urged authorities to investigate whether the implementation of past BSEC policies, such as those regarding the Z category, was being manipulated for personal gain.
The council presented some demands, which include:
Loss of Capital Due to Z Category
Investors are losing capital as 28 listed companies have been placed in the Z category. The council suggested setting a specific timeline for these companies to rectify their issues. Additionally, they proposed imposing travel bans on the directors of these companies and freezing their personal accounts until compliance is ensured. Such measures would address irregularities in dividend distribution.
Enacting Capital Investment Laws
To protect investors, the council called for the implementation of a ‘Capital Investment Law,’ similar to those in other countries. This would allow investors to take legal action if they are defrauded or denied proper dividends. They urged the BSEC to amend laws in a timely manner to increase transparency in the market.
Support for Families of Deceased Investors
The council demanded that the government provide jobs to one family member of each investor who either committed suicide or died from a heart attack after losing everything due to stock market manipulation over the past 15 years.
Compensation for Capital Loss
Since the 2010 stock market crash, many investors have lost their capital. The council demanded that authorities supply 50% of the lost capital to these investors to ease their financial distress.
Withdrawal of False Cases
Innocent investors, who have faced legal harassment while protesting for their rights after the 2010 crash, continue to suffer due to fabricated cases. The council demanded the unconditional withdrawal of these cases and compensation for the money they spent defending themselves in court.
Addressing Irregularities in Listed Companies
Investors have been deprived of accurate information and dividends due to the misconduct of listed companies. The council highlighted the need to investigate corruption, including illegal fundraising around AGMs, and take strict legal action against the culprits.
Banks Must Step In
During the current crisis, the council urged banks to step in and support the market, as they have previously raised billions through rights shares. They called on Bangladesh Bank to provide policy support to ensure banks reinvest in the stock market.
Suspending Forced Selling
Recognizing the human toll on investors who are financially ruined by the market’s decline, the council made a heartfelt plea to suspend forced selling temporarily. They argued that a humane approach is needed, especially as many investors have been driven to poverty due to ongoing market downturns.
Introducing Buyback Laws
The council stressed the urgent need for a buyback law, as many shares with strong fundamentals are now trading near face value. They proposed that companies be required to buy back shares that fall below the issue price.
Accountability for Issue Managers
Despite legal guidelines, some issue managers bring weak companies to the market and collect exorbitant premiums through IPOs. The council suggested penalizing these managers, canceling their licenses, and ensuring that newly listed companies are closely monitored.
Creation of a Capital Market Data Bank
To facilitate easier access to capital market information, the council called for the formation of a ‘Capital Market Information Bank.’ They urged the BSEC to collaborate with the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) to implement this initiative.
