FE Report (January 23, 2011)
Finance Minister Abul Maal Abdul Muhith Friday admitted some improper steps taken by the government and the securities regulator were responsible for the stock market collapse.
"The Securities and Exchange Commission (SEC) has taken some wrong decisions -- I have too, on controlling the overheated capital market. At the moment, we need to build confidence to bring normalcy to the capital market," a grim-faced finance minister told the media after the Canadian International Development and Cooperation Minister Beverley J Oda called on him at his Secretariat office.
"Right now there is no confidence in the capital market. We have to take a decision on how to avoid the recurrence of volatility in the capital market," he admitted saying, "The capital market needs immediate steps to stabilise it".
"We are hunting down the vicious syndicate. Our efforts are going on. We will inform you of the developments afterwards," he said.
Muhith said after taking over the charge of the finance ministry he tried to take some steps relating to the 1996 share scam. "But the problem was that no evidence was available," he said.
There will be a meeting between the Finance Ministry and SEC tomorrow (Sunday) with a view to restoring the investors' confidence.
"I will sit with the stakeholders including the SEC to device a new way to restore public confidence and stabilise the capital market," Muhith said.
Asked about the government's decision on 'halt to trading' up to Sunday, the Finance Minister said, "We do not prefer such types of market correction that cannot control the sharp fall of share prices."
About the circuit breaker to control the capital market, he said, "Circuit breaker is not a good tool as it has proved to be ineffective in controlling the capital market. We have to find out new ways to create investors' confidence".
Responding to a question that the institutional investors benefited from the present share market, the minister said, "I would not deny it."
"It unfortunate that some public shares have yet to come to the capital market," he added.
Asked whether the government will bring changes to SEC, the Finance Minister said, "I would not tell you about it right now".
Mentioning Canada as one of the oldest development partners of Bangladesh, Muhith said, "Canada is the third-largest bilateral donor of Bangladesh. He hoped that bilateral cooperation between the two countries would be strengthened in future."
The Canadian International Development and Cooperation Minister praised Bangladesh's role in focusing on maternal and child health. She assured of continued Canadian development assistance to Bangladesh. Robert Mcdougall, the Canadian High Commissioner, and other officials, among others, were present.
"The Securities and Exchange Commission (SEC) has taken some wrong decisions -- I have too, on controlling the overheated capital market. At the moment, we need to build confidence to bring normalcy to the capital market," a grim-faced finance minister told the media after the Canadian International Development and Cooperation Minister Beverley J Oda called on him at his Secretariat office.
"Right now there is no confidence in the capital market. We have to take a decision on how to avoid the recurrence of volatility in the capital market," he admitted saying, "The capital market needs immediate steps to stabilise it".
"We are hunting down the vicious syndicate. Our efforts are going on. We will inform you of the developments afterwards," he said.
Muhith said after taking over the charge of the finance ministry he tried to take some steps relating to the 1996 share scam. "But the problem was that no evidence was available," he said.
There will be a meeting between the Finance Ministry and SEC tomorrow (Sunday) with a view to restoring the investors' confidence.
"I will sit with the stakeholders including the SEC to device a new way to restore public confidence and stabilise the capital market," Muhith said.
Asked about the government's decision on 'halt to trading' up to Sunday, the Finance Minister said, "We do not prefer such types of market correction that cannot control the sharp fall of share prices."
About the circuit breaker to control the capital market, he said, "Circuit breaker is not a good tool as it has proved to be ineffective in controlling the capital market. We have to find out new ways to create investors' confidence".
Responding to a question that the institutional investors benefited from the present share market, the minister said, "I would not deny it."
"It unfortunate that some public shares have yet to come to the capital market," he added.
Asked whether the government will bring changes to SEC, the Finance Minister said, "I would not tell you about it right now".
Mentioning Canada as one of the oldest development partners of Bangladesh, Muhith said, "Canada is the third-largest bilateral donor of Bangladesh. He hoped that bilateral cooperation between the two countries would be strengthened in future."
The Canadian International Development and Cooperation Minister praised Bangladesh's role in focusing on maternal and child health. She assured of continued Canadian development assistance to Bangladesh. Robert Mcdougall, the Canadian High Commissioner, and other officials, among others, were present.
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