Will Share Market Scam Report Produce Anything? May 5, 2011Posted by bdoza in BANGLADESH, ECONOMY, GOVERNANCE.
Tags: share marker scam, Share market
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After repeated fall of share market prices and consequent violences on the streets, government formed an inqury committee to look into any irregularities that happened in the share market. A committee was formed headed by Ibrahim khalil’ ex Deputy Governor of Bangladesh Bank and current chairman of Krishi Bank. Finance Minister Muhith was taking time o announce the committee as he was looking for persons not associated with the share market.Ibrahim Khalil, after taking the charge started his work but initially was not getting any cooperation from the Security Exchange Commission (SEC). Nevertheless, he has completed the investigation and submitted his report to the Finance Minister. In the report, he said, after submitting it to Finance Minister, that many big name are involeved from the politicians and business circles , in addition to the men from sec. The disclosuer created a stirr in the political and business circle. Bdnews24.com unofficially release releases partial report in their website. Because of ungrounded speculation, head of inquiry had to defend himself to the media and public. He emphasises that the report is not intended to punish any individual but tried to find out the lapses in the system. After a period of waiting and confusion, Finance Minister decided to publish the report officially in full.
But will the report produce anything noteworthy? when report after the share market crisis in 1996 also produce nothing. In that report also a dozen of offenders were identified but no penalty or punishment could be imposed.
Bangladesh Bank has formed a special fund of Tk.5000 crore to refurbished the share market. The skeptics opined that it may affect adversely if not properly used and fall in the wrong hands.
An ordinary citizen
Share Market Crisis: Whom to blame? January 29, 2011Posted by bdoza in BANGLADESH, ECONOMY, GOVERNANCE.
Tags: Bangladesh Bank, CSE, DSE, SEC, Share market
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Government has formed an inquiry committee with Mr. Ibrahim Khaled as the chairman of the 3 member committee. He is given 2 months time to find out the loop holes of the share market of the past 2 years.
Even before initiating his investigation, the chairman said that it will be difficult to punish the stalwarts but atleast they will be able to identify the persons responsible for the irregularities of the share market.
In the meantime, immediately after the fall in the share market, a high level meeting in presence of the finance minister Mr.M A Muhith was held in the secretariat where fingers were pointed at a big businessman close to the government for the share market crisis.
The ordinary citizen does not like to blame any individual, rather he will blame the system or the regulatory bodies for the failure.
Barrister Moudud of BNP demanded the resignation of the finance minister. We don’t like to go that far. But atleast SEC should have taken the responsibility and chief of SEC should have resigned. 8angladesh Bank as policy maker and monitoring organization also should have taken some responsibility and should correct itself. So far an spokesman of SEC has been made OSD and an officer of SEC has been transferred. The measures are not enough to prevent the future collapse of the market.
The government also tried to revitalize the share market by the participation of the commercial banks in the share market. Many opine that progressive involvement of the commercial banks in the share market will jeopardize the share market as well as money market.
The serious concern is that if the offenders have political blessings, then the market will have little chance of revival.
An ordinary citizen
Crisis in share market January 13, 2011Posted by bdoza in BANGLADESH, ECONOMY, GOVERNANCE.
Tags: CSE, DSE, SEC, Share market
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The general index of DSE fell by 600 points or 7.75 percent to 7135 on 10.01.2010 . The general index at CSE fell 1395 points or 6.34 percent . The fall was consecutively for 5 days. Before this, on 19 Dec, 2010 the index fell 552 points or 6.72 percent. In 1996 on 5 Nov the fall was 233 point or approx. 6 point.
The fall created a deep depression among the investors.They took to the streets and tried to protest but in the face of police strong measures they had to retreat. Some of the protesters were also arrested.
The SEC, Bangladesh Bank and the government took measures to thwart the fall. Bangladesh Bank said that there is no liquidity crisis. Some blame on the inconsistent measures of SEC to regulate the market. Some blame the inherent weakness of AL government in managing the share market. In 1996 also after AL came to power share market experienced similar jolts.
The fall makes thousand of the shareholders penniless.
On the following day after the maximum fall, the market showed sharp rise which is also contrary to healthy state of the market. General index of DSE rose to 7512 points regaining 1012 of 1235 points lost in the previous two days. But there was minimum exchanges of shares and the matter seems to be beyond the control of the regulators.
The ordinary citizen had some experience with the share market. But he left it, as to him the market follows no logic. The matter seems to become a gamble and some powerful are stage-managing the whole show.
An ordinary citizen
World economic crisis and Bangladesh October 15, 2008Posted by bdoza in BANGLADESH, ECONOMY, GOVERNANCE, POLITICS.
Tags: Share market, world economic crisis
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The world is undergoing an economic crisis. It started with the bankrupcy of the large companies of the USA,which is followed by the same fate of some of European companies. The US government tried to offset the effect by giving proposal of bailing out by 700b$. McCain dramatically stopped his election campaign and with Barak Obama attended the special conference of the leaders of the congress and the government. They all appeal in suppost of the bailout.
But in the voting of the congress, the verdict went against the bailout. The congressmen who voted against the bailout actually echoed the concern of the voters of their locality. The voters could not understand the inner reason why billions of taxpayers money is prposed to be drained to the companies who are at fault. The share market in Wall Street nosedived , the reflection felt in Europe and Asian markets. The US government become desperate to make the bailout passed in the Senate at a margin so that there remain no hindrance in its ultimate passing. Special lobbying were made, explanations were given and the Senate passed the bailout bill in large margin. The European leaders also appealed the US congressmen to vote in favour to rescue the world economy. The congress in its second ballot compelled to pass the bill.
The EU leaders also sat together and discussed the magnitude of the crisis and thought of the measures to be taken to avoid the economic crisis in their own countries.
Bangladesh, a small developing nation in Asia,was eagerly looking the evolving events in the US and world market. Though the share market was initially stable here, but it suddenly nosedived.But the experts tried to convince the stakeholders that Bangladesh market affected because of panic as it has little connection with the other markets. It will be regulated with its own market dynamics. Then in a seminar/round table discussion jointly organised by Centre for Policy Dialouge (BCPD) and South Asian Center for Policy Dialogue(SACPD), Dr. Muhammad Yunus , Economist and Nobel laureate said that Bangladesh could not remain unaffected from the new economic crisis that is developing in the world. He fears that the poor will be mostly affected and poverty will be more deepened. He however stressed to find out ways to overcome the situation and to be more competative to combat the crisis.
In the meantime , President of Garments Exporters (BMGE) appeals to the Goverment to protect the largest exporting sector of the country by creating special fund like that of India.
Let us see how Bangladesh face the crisis and take necessary measures to overcome the situation.
An ordinary citizen
More on world economic crisis:
World econmic crisis: The Schiller Institue
World gripped by largest financial crisis in 100 years
What I learned at the world economic crisis-Josheph Stiglitz
US gambles blamed for world economic crisis
European Union tested by world economic crisis
IMF predicts major global slowdown amid financial crisis
Fallout from global crisis looms over export-DS
Likely impact on Bangladesh-Zahid Hussain
Bangladesh though a little late started to feel the effect of global recession.
despite some prediction that it will not be affected by the recession.
Stock exchange, new shares and an ordinary citizen March 7, 2008Posted by bdoza in BANGLADESH, ECONOMY.
Tags: Share market, Shares, Stock Exchange
Meghna and Jamuna, two oil companies recently joined the Stock Exchange and floated their shares.
Like many others an ordinary citizen also took much interest at the news. He went himself to the Broker House to personally observe the trend of share but feel frustrated when the price of each share touched 9 times of the face value. He tried to be calm and have patience but in vain, the prices of the share didn’t come to a reasonable limit. The price behaved in the same abnormal way in both the occasion.
The ordinary citizen feel that it would have been better if the shares of the public limited companies are floated as primary share in the market and sell at its face value.
In the last week, the DHL-Brac floated their shares in the primary market which is more reasonable and affordable by the common people.
The government is looking for floating shares more public limited companies in the Share market and also many private companies of different sectors will come to the market in near future.
It would be better if the companies invite applications for its primary shares from the BO account holders and choose the winner by random selection by an authentic institution such as BUET, then the common people would have the opportunity to get the shares and improve their basic financial condition.
By scientifically manipulating the share market, the purchasing capacity of the common people may be improved and government should look that more and more people come out of their poverty level and money do not remain confined to a fortunate few.