Ordinary investors have been cheated for ages, says BSEC chairman

‘‘If there is unusual trading, if there is a halt, we have to intervene immediately. I have given that instruction,” Masud Khan says

Ordinary investors have been cheated repeatedly in the capital market for a long time, says Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan.

Since he took on the post, a few shares “halted” trading and action was taken against them quickly, he said.

“A few shares were halted. There are 45 indicators in the current surveillance system to catch unusual trading. I quickly called (the officials). I told them to take action quickly.”

Masud was speaking at a discussion of the Capital Market Journalists Forum (CMJF) at 11am on Thursday.

He said, “They have been doing this for so long that the BSEC first informs the stock exchange. Then they take action. It takes two months to take action against these things.”

Masud Khan said, “During this time, a patient can die. There is a delay. Delay is not justice. We want to this to stop.

“If there is unusual trading, if there is a halt, we have to intervene immediately. I have given that instruction.”

Masud, who took over as the chairman of the capital market regulator on Jun 4, commented that the stock exchange will take quick action from now on.

Three other commissioners joined BSEC that day alongside Masud.

Highlighting their qualifications and skills, Masud said those who came to the commission had been working at the field level in the private sector.

It is not that they have retired, he said. They had been working at different positions in the private sector and the commission is a private sector commission, he said.

Asking about his first action after taking charge, the BSEC chairman said: ‘‘I first raised the floor price. Such things cannot happen. This is a red flag for the capital market. Foreigners see it as a red flag.

“After this, there was a fear of Beximco [Global Depositary Receipt] being delisted on the London Stock Exchange. We resolved it. Otherwise, many questions would have arisen if any company from the country was listed abroad later.”

Stating that BSEC has started working with Bangladesh Bank to settle capital market transactions at the T+1 level. “The technical work of RTGS will be completed. Only when this is resolved, will we be able to move to T+1 quickly.”

From now on, campaigns about the buying and selling shares in the capital market will be stopped, Masud said. Instead, a “financial consultancy” licence will be issued.

“No one will be able to discuss share prices without a licence. No one can will be able to talk about buying and selling shares,” he said.