Published :
Updated :
The Bangladesh Securities and Exchange Commission (BSEC) has formed a four-member committee to determine the reasons behind the ongoing decline in stock prices.
The panel has been given 10 working days to submit its report, according to BSEC spokesperson Md Rezaul Karim.
"The committee will investigate the causes behind the market downturn and provide a detailed report," he said.
The committee, formed on Sunday, consists of BSEC Director Mohammad Shamsur Rahman, Deputy Director Muhammad Oarisul Hasan Rifat, Assistant General Manager of the Dhaka Stock Exchange Mahfuzur Rahman, and Assistant General Manager of Central Depository Bangladesh Limited Kazi Minhaz Uddin.
Their tasks include analysing the recent market slump, identifying any individuals responsible for spreading negative rumours, determining specific factors that may have contributed to the downturn, and suggesting ways the regulator can boost investor confidence.
For the past six days, the market index, which had been fluctuating, has faced marked instability. DSEX, the main index of the Dhaka Stock Exchange, has been on a downward trend for the last two and half months despite efforts to halt the slide.
On Sunday, the DSEX dropped below the 5,000-point threshold -- its lowest in four years.
The decline has been accompanied by a steady decrease in market capitalisation. Investors are struggling to find positives, as share prices of most companies continue to drop, reducing the daily turnover to about Tk 3 billion, down from the usual Tk 5 billion.
In the last two months, trading volume occasionally reached the Tk 10 billion mark. In response to the ongoing slump, BSEC has constituted a committee with members from three different organisations to look into the underlying causes of the market's downturn.