Photo : Collected
Unstable leadership at the Bangladesh Securities and Exchange Commission (BSEC) has led to a staggering loss of Tk 20,529 crore in just two weeks following the fall of the previous government.
This significant decline in investor capital was first observed last week, with Tk 16,132 crore lost in the week of August 18 to 22. The drop began on August 10, when the interim government assumed power.
The market turmoil was exacerbated by the resignation of Professor Shibli Rubayat-Ul-Islam, the former BSEC Chairman, and the subsequent uncertainty surrounding his replacement.
The appointment of a new chairman, Dr. M. Masroor Riaz, on August 13 was short-lived as he stepped down on August 17, leading to the appointment of Khondoker Rashed Maqsood on August 18.
Concerns have been raised about the impact of these leadership changes on market stability. Investors have reacted to the uncertainty by selling off shares, leading to a crisis of confidence and a dramatic fall in stock prices. Many market participants fear that the new chairman may not be able to provide the stability needed to restore investor confidence.
BSEC Executive Director and Spokesperson Mohammad Rezaul Karim reassured The Daily Messenger that the capital market had previously shown positive trends and that the recent downturn was a result of the market adjusting to new leadership. He expressed hope that with the new chairman in place, the market would recover, emphasizing that the BSEC is committed to creating a healthy investment environment with enhanced transparency and accountability.
Data from the Dhaka Stock Exchange (DSE) reveals that the market capital fell by Tk 16,132 crore during the week of August 18 to 22, and by Tk 20,529 crore over the last two weeks.
Notably, the market saw a decline for four consecutive days during this period before a slight recovery on the final trading day, coinciding with Khondoker Rashed Maqsood's appointment as BSEC Chairman.
The situation unfolded after the resignation of Professor Shibli Rubayat-Ul-Islam on August 10, following the collapse of Hasina's government on August 5 amid student protests. In accordance with the Bangladesh Securities and Exchange Commission Act of 1993, Dr. M. Masroor Riaz was appointed as BSEC Chairman on August 13. However, his resignation on August 17 led to the appointment of Khondoker Rashed Maqsood as the new chairman from the Financial Institutions Department of the Ministry of Finance, effective August 18.
Messenger/Fameema
