Home
+
SEC spokesperson says a review is ongoing with no decision on account reopening yet
Published : 12 Nov 2024, 07:22 PM
Rumours about the reopening of ‘suspended’ Beneficiary Owner accounts have dragged the Dhaka Stock Exchange, or DSE, index 35 points down.
The market reacted negatively, with most company shares losing value.
On Tuesday, the DSE opened at 5,333 points and closed at 5,298, showing a decline of 0.66 percent from the previous day.
Initially, the market was on an upward trend, with the index gaining 36 points in the first one-and-a-half hours of trading.
However, rumours soon spread that the Securities and Exchange Commission, or SEC, might allow the reopening of suspended BO accounts, which had been frozen due to alleged market manipulation.
This caused caution among most investors, who responded by selling off shares, particularly in sectors like textiles, engineering, finance, banking, and pharmaceuticals.
The market failed to recover as it closed in a downward trend.
The SEC had earlier frozen the accounts of individuals and business groups accused of manipulating share prices.
The commission had also acted upon directives from the Anti-Corruption Commission, or ACC, the Bangladesh Financial Intelligence Unit, or BFIU, and Bangladesh Bank to suspend certain accounts.
SEC spokesperson Md Rezaul Karim told bdnews24.com that the matter of reopening these accounts is under review to assess whether it could help enhance market liquidity.
“However, no final decision has been made as yet. If a decision is reached, investors will be informed,” he said.
He added, "If the conditions set at the time of the suspension are met, the Commission may consider reopening these accounts. However, any account involved in criminal activities will not be allowed to resume operations. The review is focused on whether the accounts can be reactivated while restricting cash withdrawals."
On the day, Tk 5.78 billion worth of shares were traded, slightly up from Tk 5.77 billion the previous day.
Out of the 352 companies listed, 136 saw an increase in share prices, while 216 experienced declines.
The insurance sector performed well, with Tk 410 million in transactions and seven of the top ten gainers coming from this sector.
