FE Report (January 21, 2011)
Former adviser of caretaker government Mirza Azizul Islam Thursday blamed the slack monitoring by the market regulator Securities and Exchange Commission (SEC) for recent collapse in both the bourses of the country.
"The market regulators today (Thursday) suspended operations of six brokerage houses and this indicates those houses were involved in market manipulation. This should have been sorted out by the SEC much earlier," he told UNB Thursday evening.
Mirza Aziz said that the SEC takes such decisions when the market witnesses steep fall, but not when the index rises abnormally.
He said that the decision to impose circuit breaker often halts the rise of the market. After witnessing a fall, the market might have gained in 30 minutes, but that cannot be allowed to happen due to the prompt imposition of circuit breaker.
Asked about the SEC decision to suspend trading Sunday, Mirza Aziz, also a former SEC chairman, said that the market is not being allowed to function in its own way.
He said that the regulator has the responsibility to observe whether or not there is any manipulation in the market. "The market should be allowed to function through proper observation."
The former adviser expressed the view that the regulator would never be successful in stabilising the market if they only take decisions based on the end results of a particular day.
"The market regulators today (Thursday) suspended operations of six brokerage houses and this indicates those houses were involved in market manipulation. This should have been sorted out by the SEC much earlier," he told UNB Thursday evening.
Mirza Aziz said that the SEC takes such decisions when the market witnesses steep fall, but not when the index rises abnormally.
He said that the decision to impose circuit breaker often halts the rise of the market. After witnessing a fall, the market might have gained in 30 minutes, but that cannot be allowed to happen due to the prompt imposition of circuit breaker.
Asked about the SEC decision to suspend trading Sunday, Mirza Aziz, also a former SEC chairman, said that the market is not being allowed to function in its own way.
He said that the regulator has the responsibility to observe whether or not there is any manipulation in the market. "The market should be allowed to function through proper observation."
The former adviser expressed the view that the regulator would never be successful in stabilising the market if they only take decisions based on the end results of a particular day.
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