The securities regulator will sit with various stakeholders to listen to their observations about the market and encourage them to play a proactive role in revamping it.
As part of the move, the Bangladesh Securities and Exchange Commission (BSEC) will sit with merchant bankers, stock brokers, banks, listed companies and high net worth individuals.
"The securities regulator wants to restore investors' confidence ensuring rational behaviour of institutional investors," said Mohammad Rezaul Karim, a BSEC executive director and spokesperson.
He said the market prices of many listed securities presently are below fair prices. "Under such a situation, general investors' confidence can be restored if institutional investors increase their participation."
The regulatory move on holding meeting with stakeholders came following the recent declining trend of the market that saw steep correction in broad index and turnover value as well.
The DSEX, broad index of Dhaka Stock Exchange (DSE), declined 3.77 per cent or 240.44 points in last eight sessions and closed at 6126.51 on Thursday.
During the period, investors' participation also declined significantly and in some sessions the market saw buyer crisis.
Following the investors' lower participation, the turnover value on the premier bourse DSE hit 16-month low on Tuesday to close at Tk 3.19 billion.
Asked, another BSEC official said institutional investors cannot behave like retail investors having less financial literacy.
"We want to see logical investment decisions by institutional investors," the official said.
He said the securities regulator sometimes found that many institutional investors behaved like retailers to incur profits creating selling pressure.
"Institutional investors need to incur profits to disburse dividend at the end of the year. But they cannot play the role of retailers," said the BSEC official.
He said the securities regulator wants rational behaviour from institutional investors.
"Another objective of sitting with institutional investors is to hear their observation regarding the market."
The official said the observations of institutional investors will help the securities regulator to take measures for stabilising the market.
Meanwhile, the securities regulator on Thursday sat with leading asset management companies (AMCs).
At the meeting held at the BSEC office, the securities regulator asked the AMCs to avoid the behaviour of retail investors.
The AMCs have also been suggested to support the market in a favourable position of injecting funds.
Talking to the FE, another senior BSEC official said they will look into the utilisation of paid-up capitals by market operators.
"We want to see whether any amount of their capitals are being misused or used for personal purposes," the official said.
Presently, there are 67 merchant banks, 53 AMCs, 25 fund managers, 250 listed companies, 308 TREC (trading right entilement certificate) holders in DSE and 162 TREC holders in Chittagong Stock Exchange (CSE).
