Reform effects on stock market will show within June, says DSE chief

Reforms in Bangladesh's capital market are expected to become apparent to investors within June, according to Dhaka Stock Exchange, or DSE, Chairman Mominul Islam.

Speaking at an event organised by the Capital Market Journalists Forum, or CMJF, on Saturday, he expressed optimism about the changes being made.

Mominul said, “DSE has set things right. One of the major tasks is reform. Investors will see the impact of these reforms within June.”

The DSE chief added that the reforms would send a positive signal to investors.

"With the recovery of the economy, the stock market will also progress. We are hopeful that by June, the market will move in a positive direction."

He identified insider trading and market manipulation as the primary issues that have hampered the country's stock market.

At the 'CMJF Talk with Mominul Islam' event, the DSE chairman said both insider trading and market manipulation have been stopped.

He added that regulatory authorities will not interfere in market activities, as it is not within DSE’s responsibilities.

"By June, many aspects of the economy will improve, leading to a better investment environment. With increasing import and export activities, the stock market will start to recover."

He spoke about ongoing discussions on listing good companies, particularly foreign companies, to create a favourable environment in the market.

Along with providing incentives, DSE has proposed to the government to set a limit on bank loans and attach listing conditions for companies.

The DSE faced two trading disruptions this month due to server issues.

Mominul explained that the disruption was not a technical issue but a human error during data integration.

“At the beginning of the year, the software’s date was set incorrectly; instead of 2025, it was set to 2024 due to a mistake by the licensing company,” he said.

Mominul also spoke about ongoing investigations into insider trading and collusion involving 12 companies.

"The SEC [Securities and Exchange Commission] has formed a task force to investigate these matters.

“Once their report is submitted, it will be clear who is involved at what level and the extent of their involvement."

The DSE chief commented that conducting separate investigations could create opportunities to avoid accountability.

"Certain tasks need to be coordinated between DSE officials, the SEC, and brokerage firms.”

He explained that DSE submits reports to the SEC, and if the reports come from a single source, determining accountability becomes easier.