The Managing Director of Dhaka Stock Exchange (DSE), ATM Tariquzzaman, voiced strong criticism of the Bangladesh Securities and Exchange Commission's (BSEC) policy on floor pricing during a CMJF program Tuesday. Tariquzzaman argued that such interventions in the free market are causing difficulties in stock sales and are detrimental to market confidence.
In his talk, Tariquzzaman highlighted the challenges faced by the DSE, particularly the impact of BSEC's monopoly over approving initial public offerings (IPOs). He suggested that empowering stock exchanges to conduct their own IPO compliance checks could significantly enhance investor trust and align with global practices.
Tariquzzaman also outlined several strategic initiatives undertaken since September to bolster the capital market. These efforts include tackling market manipulation, advancing de-mutualisation to separate ownership from management, and seeking strategic investments. Notably, proposals from Shanghai and Shenzhen Stock Exchanges have been pending due to pandemic-related delays.
Furthermore, he emphasized the importance of technical assistance, attracting reputable companies to the exchange, improving governance, and enhancing investor protection measures to combat fraud and embezzlement. One significant change he advocated for was the rotation of auditors at DSE, which has had the same auditing entity for over 36 years.
The DSE's Managing Director's call for reforms reflects a broader push for transparency and efficiency in Bangladesh's capital markets, aiming to foster a more robust and investor-friendly environment.
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