Guiding small investors


FE Team | Published: March 30, 2017 21:24:05 | Updated: October 18, 2017 00:40:35


Guiding small investors

THE Prime Minister while inaugurating the newly built Bangladesh Security and Exchange Commission (BSEC) Bhaban at Agargaon recently advised the stock market investors to invest in stock markets based on learning and understanding and not on the basis of rumours or hearsay. It may be recalled that many of the stock market investors lost their investments in stock market crashes in 2007 and 2010-11. Unfortunately nothing happened to the culprits who were pinpointed by the enquiry committee. Besides, there are many investors who invested only in primary shares and debentures duly cleared by  the BSEC after proper study and careful analysis. Thus no one was required to study the prospectus of public limited company (PLC). The BSEC is the sole authority to allow raising capital by PLCs while the ministry concerned is there to oversee the process. It is normal globally to institute criminal procedures as per law. It may be mentioned that one Indian was jailed in case of Mumbai stock market scandal but he died in jail. Similarly many a manipulators got jail sentence in New York stock market manipulation cases. Can't we practise law in punishing those manipulators, fraudulent entrepreneurs?
Years back in newspapers there was special column under company profile where brief description of PLC was narrated incorporating year of incorporation, issue price of share in IPO, year-wise dividends cam bonus shares etc. What is the current price and total earning for investor per share? Similar company profiles need to be introduced in newspapers in the name of 'right to information for all'.
It is normal globally that multinational public limited companies are to issue shares while doing business in a country. But we have failed to do so. Let us hope that good governance shall prevail and more people will be interested to invest in stock market in response to the call of the Prime Minister.
Mahmud Ali
New Eskaton Road,
Dhaka

 

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