Mohammad Mufazzal
The securities regulator- Bangladesh Securities and Exchange Commission (BSEC)- has claimed said that it had implemented majority number of recommendations made by the Khondkar Ibrahim Khaled-led probe body formed after December (2010)-January (2011) stock market debacle.
According to BSEC officials, implementation of remaining recommendations are under process due to lengthy formalities.
"Our legal and enforcement departments are working as part of implementing the recommendations made by probe body. The regulator has conducted further investigation on 17 case studies included in the report," said BSEC executive director Mohammad Saifur, also the spokesperson of the regulatory body.
Rahman said the securities regulator has filed cases against five market players along with imposing penalties on others involved with manipulation.
According to BSEC officials, implementation of major recommendations include the completion of exchanges' demutualisation process, amendment of book building method and public issue rules, formulation of rules of distributing placement shares, conversion of omnibus accounts into separate BO (beneficiary owner's) accounts, changing of share's face value into uniform value of Tk 10 and suspension of one BSEC executive director.
On October 29 last, the securities regulator fined Golam Mostafa Tk 30 million and ntv Chairman Alhaj Md. Mosaddek Ali Falu Tk 10 million for their alleged 'involvement' in unusual manipulative share transactions before stock market debacle.
A four-member body led by Khondokar Ibrahim Khaled, former deputy governor of Bangladesh Bank, submitted its report of 143 pages, other than annexure of 96 pages, on April 7, 2011.
The probe report included, among others, 25 major recommendations and 17 case studies.
The report mainly blamed the then regulatory body and recommended the removal of former chairman, one member and two executive directors. The probe body also recommended further investigations on many issues such as distribution of placement shares.
Khondkar Ibrahim Khaled said after submission of their probe report, the regulator and government were not seen proactive in implementing the recommendations.
"Demutualisation of exchanges was executed after a gap of a significant time though we submitted our report. Other reforms brought in rules and regulations are comparatively satisfactory. But the regulatory measures in taking punitive actions against market players are not up to the mark," Mr. Khaled told this correspondent.
The probe body recommended the conversion of share's face value into Tk 10 each as market capitalisation of the companies whose share prices were split and their prices jumped above 655 per cent before debacle.
"The process of converting face value into Tk 10 has been completed in such a way that no one can be benefited illegally by capitalising price sensitive information," the BSEC said.
The probe body blamed the mysterious share transaction executed under omnibus accounts for the market crash and recommended the conversion of such accounts.
"The securities regulator has already completed the conversion of omnibus accounts into separate BO," the BSEC said.
The probe body recommended intensive investigation against the then BSEC member Mansur Alam for his alleged involvement with the manipulation.
"The investigation against Mr. Alam is almost completed. We hope the report will be submitted to the ministry within two weeks," a BSEC member said. In its report the probe body also stressed on exchanges' report regarding the companies' listing.
mufazzal.fe@gmail.com
The securities regulator- Bangladesh Securities and Exchange Commission (BSEC)- has claimed said that it had implemented majority number of recommendations made by the Khondkar Ibrahim Khaled-led probe body formed after December (2010)-January (2011) stock market debacle.
According to BSEC officials, implementation of remaining recommendations are under process due to lengthy formalities.
"Our legal and enforcement departments are working as part of implementing the recommendations made by probe body. The regulator has conducted further investigation on 17 case studies included in the report," said BSEC executive director Mohammad Saifur, also the spokesperson of the regulatory body.
Rahman said the securities regulator has filed cases against five market players along with imposing penalties on others involved with manipulation.
According to BSEC officials, implementation of major recommendations include the completion of exchanges' demutualisation process, amendment of book building method and public issue rules, formulation of rules of distributing placement shares, conversion of omnibus accounts into separate BO (beneficiary owner's) accounts, changing of share's face value into uniform value of Tk 10 and suspension of one BSEC executive director.
On October 29 last, the securities regulator fined Golam Mostafa Tk 30 million and ntv Chairman Alhaj Md. Mosaddek Ali Falu Tk 10 million for their alleged 'involvement' in unusual manipulative share transactions before stock market debacle.
A four-member body led by Khondokar Ibrahim Khaled, former deputy governor of Bangladesh Bank, submitted its report of 143 pages, other than annexure of 96 pages, on April 7, 2011.
The probe report included, among others, 25 major recommendations and 17 case studies.
The report mainly blamed the then regulatory body and recommended the removal of former chairman, one member and two executive directors. The probe body also recommended further investigations on many issues such as distribution of placement shares.
Khondkar Ibrahim Khaled said after submission of their probe report, the regulator and government were not seen proactive in implementing the recommendations.
"Demutualisation of exchanges was executed after a gap of a significant time though we submitted our report. Other reforms brought in rules and regulations are comparatively satisfactory. But the regulatory measures in taking punitive actions against market players are not up to the mark," Mr. Khaled told this correspondent.
The probe body recommended the conversion of share's face value into Tk 10 each as market capitalisation of the companies whose share prices were split and their prices jumped above 655 per cent before debacle.
"The process of converting face value into Tk 10 has been completed in such a way that no one can be benefited illegally by capitalising price sensitive information," the BSEC said.
The probe body blamed the mysterious share transaction executed under omnibus accounts for the market crash and recommended the conversion of such accounts.
"The securities regulator has already completed the conversion of omnibus accounts into separate BO," the BSEC said.
The probe body recommended intensive investigation against the then BSEC member Mansur Alam for his alleged involvement with the manipulation.
"The investigation against Mr. Alam is almost completed. We hope the report will be submitted to the ministry within two weeks," a BSEC member said. In its report the probe body also stressed on exchanges' report regarding the companies' listing.
mufazzal.fe@gmail.com
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