Brokers seek chief adviser’s interference to bring good companies in market

The DSE Brokers Association (DBA) has sought the intervention of the chief adviser to bring good companies to the stock market.

The DBA, an organization of brokerage house owners of the Dhaka Stock Exchange (DSE), sought this intervention in a letter written to Chief Adviser, Professor Muhammad Yunus on Tuesday. The letter was given by DBA President Saifur Islam, UNB reports citing a press release.

The DBA said that the capital market has been going through extreme irregularities, mismanagement and instability for 15 years. Due to various irregularities, numerous institutions in the stock market have become almost ineffective and failed institutions.

During this time, the market has shrunk by 40 percent in real terms. Again, the market has suffered irreparable damage due to the lowest price level or floor price in several rounds since 2020, said the letter.

As a result, international fund managers have turned their backs on Bangladesh, and local investors' investments have also been damaged. In the last 15 years, crores of taka have been looted from the market through unscrupulous initial public offerings (IPO) listings. This has created a permanent liquidity and confidence crisis in the market, said the DBA President in the letter.

The DBA also said that in the current situation, there has been a serious crisis of trust among market participants including regulatory agencies, market management agencies, listed companies, market intermediaries and financial auditors, and credit rating agencies.

“To overcome this crisis and enrich the market, good companies should be listed along with new products. Investors will also benefit from this. Through this, new investors will be attracted to the market and the liquidity problem will also be solved,” the letter wrote.