A parliamentary standing committee on the finance ministry yesterday said the regulator's activities are destabilising the market, amid frequent intervention by the Securities and Exchange Commission (SEC).
The committee said the regulator should consult the exchanges and the listed companies association before taking any action.
Referring to the SEC's recent decision on margin loans and the price-earning ratio, Chairman of the committee AHM Mostafa Kamal said: "The SEC did not discuss with anybody before taking the decisions."
"The committee also suggested SEC consult with the Dhaka and Chittagong stock exchanges and the association of publicly listed companies before intervening in the market," he told reporters, after a meeting of the JS body.
The meeting was held with stockmarket stakeholders to discuss the situation in the market and put forward a set of short- and medium-term recommendations.
After the meeting, Kamal said the committee recommended relaxing the lock-in period and netting facilities.
The committee observed that the lock-in system for private placement as well as on the sponsor shares should be relaxed to increase the supply of stocks, he said.
Presently, there is a one-year lock-in period for shares issued through private placement and a three-year lock-in for sponsor shares.
Kamal said the JS body also thought that if the share netting facilities are relaxed further, it will increase the number of shares traded.
Recently, the SEC stopped share netting in non-marginable securities.
According to news agency BSS, the parliamentary standing committee asked the authorities to take measures to inform people about the capital market in the quickest possible time. Kamal suggested a separate wing for the purpose.
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