FE Report (November 1, 2010)
Dhaka Stock Exchange (DSE) president Shakil Rizvi dismissed Sunday the allegation about index manipulation, claiming that the index of the prime bourse was transparent enough.
The bourse president said this in Sylhet city while he was inaugurating a brokerage branch, according to a DSE press release.
"The DSE is in no way involved in index manipulation and there is nothing to be worried about the index," the president said.
"The DSE takes decisions according to its prior consultation with the SEC," he added.
The DSE is now adjusting its index taking into account the tradable shares of a company but total shares, including locked-in shares, are added to the market capitalisation.
Recently, the DSE has calculated its index by adjusting the tradable shares of 24 companies. Previously, it used to take total shares of a company to calculate the index.
On October 27, the SEC said the DSE calculated its index by adjusting the tradable shares without any prior approval from the regulator.
But the DSE claimed it has calculated the index following a decision taken at a meeting with SEC member Mansur Alam in the chair on June 2 last at SEC.
After applying the index calculation formula, DSE also informed the SEC chairman about the formula by sending a letter on August 5 last, it added.
"Why SEC has raised the question of taking permission after so many days, despite the fact that DSE earlier sent a letter to the regulator?" a DSE official said.
Dhaka Stock Exchange (DSE) president Shakil Rizvi dismissed Sunday the allegation about index manipulation, claiming that the index of the prime bourse was transparent enough.
The bourse president said this in Sylhet city while he was inaugurating a brokerage branch, according to a DSE press release.
"The DSE is in no way involved in index manipulation and there is nothing to be worried about the index," the president said.
"The DSE takes decisions according to its prior consultation with the SEC," he added.
The DSE is now adjusting its index taking into account the tradable shares of a company but total shares, including locked-in shares, are added to the market capitalisation.
Recently, the DSE has calculated its index by adjusting the tradable shares of 24 companies. Previously, it used to take total shares of a company to calculate the index.
On October 27, the SEC said the DSE calculated its index by adjusting the tradable shares without any prior approval from the regulator.
But the DSE claimed it has calculated the index following a decision taken at a meeting with SEC member Mansur Alam in the chair on June 2 last at SEC.
After applying the index calculation formula, DSE also informed the SEC chairman about the formula by sending a letter on August 5 last, it added.
"Why SEC has raised the question of taking permission after so many days, despite the fact that DSE earlier sent a letter to the regulator?" a DSE official said.
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