Abu Sazzad :
With a view to improving the country’s long sluggish share market, Commerce Minister Tofail Ahmed on Wednesday sought the central bank’s strong supervisory and regulatory functions for its gradual rebound.
“The banking sector had invested 30 to 40 per cent of their capital in the share market when it was lively by violating the central bank’s instruction for investing of a maximum 10 per cent. The banking sector earned huge profit at that time,” he said while addressing a seminar on ‘Mediation for Settlement of Commercial Dispute and Recovery of Overdue Bank Loan’ in the conference room of Metropolitan Chamber of Commerce and Industry (MCCI) in the city. Organised jointly by Bangladesh International Arbitration Centre (BIAC) and MCCI, the seminar was addressed by Bangladesh Bank Deputy Governor SK Sur Chowdhury, BIAC Chairman Mahbubur Rahman, MCCI President Syed Nasim Manjur and BIAC Chief Executive Tofail Ali, among others.
Tofail Ahmed said that the general investors were inspired to invest in the capital market while it was at its boom but they are now ruined after the devastation of the market. “So, it is the obligation of central bank to look into the matter for the improvement of the bourse as well as bring back the confidence of the investors on the capital market.” Talking about the relaxation of settlement for classified loan over Tk 500 crore, the minister said such kind of decisions would encourage the bad borrower for further repetition of loan defaulting culture. Criticising the central bank’s instruction for the payment of classified loan of such a huge amount, Tofail said this kind of relaxation is not wise for any economy.
A senior official of the IDLC, on condition on anonymity, told this reporter that the continuous falling of share market made a worried situation for the general investors. He suggested for setting up a counseling centre for investors to expel their fear of furthering falling of the market. He also recommended for taking necessary measures, including removing regulatory barriers of bank’s exposure and allowing to open more brokerage firms.
In the past week, the DSEX settled at 4,047, falling 3.5 per cent which is 18-month low and the biggest weekly loss this year due to all-round selling pressure in view of political situation after post-city corporation polls. However, both the Dhaka and Chittagong Stock Exchanges have witnessed a rise during the last two days (Tuesday and Wednesday) trading.
