Data, News & Trend Analysis of Dhaka Stock Exchange

BSEC to sit with market intermediaries to increase liquidity

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As part of its measures to prop up the capital market, the securities regulator has planned a coordination meeting with the market intermediaries to discuss how to increase liquidity supply to the country’s volatile equity market.

On Sunday, the Bangladesh Securities and Exchange Commission (BSEC) sent letters to the market intermediaries inviting them to the meeting scheduled for Wednesday.

The representatives of the DSE Brokers Association of Bangladesh (DBA), Bangladesh Merchant Bankers Association (BMBA), Association of Asset Management Companies and Mutual Funds (AAMCMF), and Capital Market Stabilisation Fund (CMSF) will take part in the coordination meeting.

The capital market took a hit from the Russia-Ukraine war that broke out a month ago and it has yet to come out of that volatility.

On Sunday, the Dhaka Stock Exchange (DSE), the country’s premier bourse, closed in a downward trend.

Mohammad Rezaul Karim, executive director and spokesman of BSEC, said the commission has recently taken several initiatives to increase fund flow to the capital market.

It will also discuss with the market intermediaries about institutional investments from the banking sector and brokerage firms, in particular, he said.

He said the market regulator will also discuss with the intermediaries the proposal of merchant banks on the formation of a fund of Tk10,000 crore to support the capital market.

How to create this fund and how it can be used and the impact of the market along with market stabilisation funds said the executive director.

Besides, the regulator will also discuss the role of the Investment Corporation of Bangladesh as the market maker, he added.

Recently, the Bangladesh Merchant Bankers Association sent a proposal to the commission for setting up a special fund of Tk10,000 crore for the stock market intermediaries.

According to BMBA leaders, by raising the fund through issuing bonds, the market intermediaries could be provided with long-term loans at low-interest rates.

Special credit facilities will increase the capacity of the intermediaries. So that they can deal with the pressure of panic selloffs by general investors, they added.

Source: dsebd.org, bsec, tbs

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