Capital market stakeholders on Thursday called for setting up a fact-finding committee to investigate irregularities in the market during the previous regime of the Awami League.
They urged for documentation of market anomalies between 2010 and 2024 during a press conference held at Dhaka Club in the capital.
Saiful Islam, president of the DSE Brokers Association of Bangladesh, said the scale of these irregularities remains unclear.
鈥楾o reform the financial sector, similar committees have been formed for banks and other areas, gathering detailed data. A fact-finding committee for the capital market could provide insights for future reforms,鈥� he explained.
He further stressed that such a committee would help analyse data to prevent similar issues after the reforms are implemented.
Dhaka Stock Exchange chairman Mominul Haque highlighted that around Tk 600 crore worth of initial public offerings entered the market in the last decade, many of them were weak and unqualified companies.
鈥楾hese companies wouldn鈥檛 qualify elsewhere but managed to enter the capital market,鈥� he stated.
Mominul also criticised the stock exchange鈥檚 limited role in market development.
鈥楧SE has mostly been doing routine tasks, whereas it should play central role to the market鈥檚 growth. Good governance in the capital market has hit its lowest point in the last 15 years,鈥� he said.
He described the decision to set a floor price as rash, adding, 鈥楾he market鈥檚 foundation has been damaged, and recovering from these irregularities will take time.鈥�
He added that the DSE planned to present a recovery roadmap by February or March.
Mominul noted that the demutualisation act is under review, and amendments will be introduced to make it more investor- and market-friendly.
He also questioned the necessity of having two stock exchanges in Bangladesh, suggesting a potential merger with the Chittagong Stock Exchange for greater efficiency after discussing the issue with the Chattogram bourse.
DSE shareholder director Minhaz Mannan Emon emphasised the need to review IPOs from the last 10 years to uncover corruption and assess the current state of listed companies.
鈥楳ost of these companies are in poor condition. Additionally, the previous commission issued licenses to much more brokerage firms than needed, many of which are now dysfunctional,鈥� he said.
The stakeholders urged swift action to address these issues and prevent further deterioration of the market.