Dhaka Stock Exchange has lauded Finance Minister Abdul Maal Abdul Muhith even though retail investors had severely criticised him for his remarks during the stock market crash.
A senior Dhaka Stock Exchange (DSE) Director said the measures Muhith had taken to prevent the stock market crash would be “engraved in letters of gold”.
A 12-stroong delegation, including the DSE President, Vice President and directors met the minister at the Secretariat on Wednesday.
DSE President Ahsanul Islam Titu said, “A capital of Tk 30 to 40 billion was collected from the market during the tenure of the last government. It has increased to Tk 100 billion during your tenure.”
“This market will create more employment in future.”
DSE Director Ahmed Rashid Lali thanked and praised the government for its help and concession to bolster the capital market.
“We always speak about your support and concession. Your deeds in regards to demutualisation, formation of tribunal for the capital market and IPO will be written in letters of gold.”
After the government took over, DSE general index rose rose to around 10,000 points from 2500 just within two years. Shares had started falling since Dec 2010.
Finance Minister Muhith took many initiatives to prevent the crash. He had initiated discussions with all parties.
A committee was also formed to find out the cause of the meltdown. Many laws were formulated, scrapped and reformed.
Dhaka Stock Exchange was also demutualised.
A slew of facilities and incentives were also provided to small, institutional and overseas investors to rejuvenate the market.
However, investors took serious exception to the Finance Minister calling them speculators amid the stock market crash.
They also chanted slogans in front of the DSE, demanding resignation of the minister.
DSE leaders and government officials, however, think market is gaining due to the moves of the government in the past when the stocks went bust.
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Lali said, “You have furnished the capital market. It has reached a position from where it will continue to move ahead.”
After the DSE President and the Director were finished, the minister gave a brief speech, but he did not make any comment on the market.
He said, “Thank you all. Conflicting situation cropped up before demutualisation in many countries. But the way you have demutualised deserves praise.”
Some deviations from laws had taken place to restore order in the market. Its aim was to take the market to a position where it can be a ‘Major Source of Investment’.
“We have witnessed turmoil. Our prime objective was to stabilise the capital market, “Bank and Financial Instutions Division Secretary M Aslam Alam said.
“It has been done. Now our aim is to take the capital market to growth,” said.
The DSE President sought some facilities for the development of the capital market during the meeting with the Finance Minister.
The facilities include provision of tax rebate after completion of the full process of demutualisation, members’ stamp duty relief during handover of their shares and tax relief for offloading shares.
The finance minister promised to look into them.
DSE President Titu said, “Our market depends on equity. As a result, all speculations relate to equity. So bonds have to be made popular and arrangements should be made to run derivative.”
He also recommended that the minister consider giving permissions to brokerage houses, closed since 2010, to open branches on a limited scale.
Source: Bd news24
