Photo : Daily Messenger
Managing Director of Dhaka Stock Exchange (DSE) ATM Tariquzzaman said, stock exchanges should have more role in vetting while approving IPOs of new companies. Earlier stock exchange had a good role, now much less.
He said this at the CMJF Talk program organized by the Capital Market Journalists Forum (CMJF) on Tuesday (14 November). He said that BSEC currently approves all types of public offerings including IPOs. Different countries around the world have different laws. Somewhere the stock exchange approves, somewhere else the regulator approves. In our country, the regulator approves the IPO. Stock exchange should also play a role on it.
In response to a question, the managing director of DSE said that the floor price is not a permanent solution to improve confidence in the capital market. It involves direct intervention in share price determination. It is not right for regulators or stock exchanges to fix prices. It is nowhere in the world. Stock exchange is the place to discover prices.
ATM Tariquzzaman said de-mutualization is done by separating ownership from management in the stock exchange. The Act gives preference to individual directors. Trecholders are also represented. However, while working, it seems that some things need to be changed, we will discuss it with the regulator. After de-mutualization, the stock exchange has also benefited a lot. No direct intervention. The board has no influence on the operation. But there is room for more work, he noted.
Regarding the role of strategic investors, he said, Shanghai and Shenzhen stock exchanges had some technical proposals. Some work on that proposal has already been done. There is more left. Implementation has been delayed due to Corona. Hopefully, the rest will work too.
Regarding investor protection, he said, there will be profit and loss in the market. It is not possible to guarantee that no one will suffer loss. However, we are active in ensuring that no one is a victim of fraud, so that no one can embezzle the investor’s money.
In response to the question whether DSE is able to play an effective role in stopping manipulation in the capital market, he said that the measures that have already been taken on manipulation, many investigations have been sent to the regulatory body after conducting DSE. DSE’s surveillance team is working to control manipulation.
However, DSE needs more capabilities in stop tampering and deep searches. This is especially important in factory inspections. Because if DSE wants information to investigate manipulation well, no one can give it. If not, we do not have the jurisdiction to compel or take action, which the BSEC has.
President of CMJF Ziaur Rahman gave welcome speech and general secretary Abu Ali moderated the event.
Messenger/Sanjay/Alamin
