The Financial Express

BSEC for making investments forming own portfolios by issuers

Listed companies should play role of market makers

| Updated: August 04, 2022 16:46:07

BSEC for making investments forming own portfolios by issuers

The securities regulator has urged listed companies to play market supportive roles injecting fresh funds through possible ways including formation of their own portfolios.

The Bangladesh Securities and Exchange Commission (BSEC) made the call at a meeting held Monday at the BSEC office with the leaders of Bangladesh Association of Publicly Listed Companies (BAPLC).

"The BSEC has made two requests including making investments forming own portfolios by listed companies," said Mohammad Rezaul Karim, a BSEC director and spokesperson.

He said the BSEC has also urged the BAPLC leaders to inspire the sponsor-directors of listed companies for investing in the market through declarations.

The BSEC commissioner Dr. Shaikh Shamsuddin Ahmed chaired the meeting attended by BAPLC president M. Anis Ud Dowla and executive members Mrs. Rokeya Quader, Ms. Farzanah Chowdhury, and Tabith Awal, among others.

Asked, Ms. Farzanah Chowdhury said the ways of restoring investors' confidence through increased institutional participations were discussed at the meeting.

"Apart from increasing institutional participations in transactions, the listing of good companies is also important to enhance the depth of the market," Ms. Chowdhury said.

She said creating awareness is needed for listing of more companies having good fundamentals.

"We will hold awareness programmes with the securities regulator to enhance the listing of good companies," Ms. Chowdhury said.

The BSEC executive director Mr. Karim said the regulator will try to consider an exemption for the sponsor-directors if they face problem with prohibition periods in case of purchasing securities through declarations.

He said the recommendation of holding awareness programmes jointly with the securities regulator came from the BAPLC.

"There are many good companies in the groups of listed companies' sponsor-directors. The sponsor-directors can facilitate the listing of those companies," said the BSEC spokesperson Mr. Karim.

He said the sponsor-directors of listed companies have stakes in institutional investors including insurers.

"The matter of inspiring institutional investors to support the market was discussed at the meeting."

Another matter of helping the listed companies in playing the role of market makers also discussed at the meeting.

"The securities regulator will help the listed companies if they want to form associate companies to act as market makers. They also can do it through their subsidiaries and the BSEC will issue licenses of market makers."

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