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Share Market Crisis: Whom to blame? January 29, 2011

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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, 2011

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The share market in Bangladesh made a nosedive and fell to the deepest in its history. Both the DSE and CSE were feeling the same experience in the last week.

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