A section of investors have sought the direct intervention of Prime Minister Sheikh Hasina in the situation of recession in the capital market, claiming that investors are constantly losing capital in the stock market and many are sitting on their own after investing. This demand was announced in a press conference at the National Press Club on Wednesday (May 29). The press conference was held under the banner of ‘Capital Market Investor Jatiya Oikya Foundation’. President of the organization at the press conference. Ruhul Amin Akand said that about 3.5 million investors are closely related to the capital market and about 3 crore people are making their living indirectly. He said that capital gain tax is being imposed on individual investors in the next budget (however, capital gain less than 40 lakhs will not be taxed), such a news has come in the media. In fact, if gains tax is imposed on individual investors now, the market will lose attractiveness for the long term. “Currently many investors have undisclosed money in the capital market.
Not only that, many undiscovered funds are preparing to enter the capital market as the capital market is going down. In this situation, if gain tax is imposed on individual investors, then those money may not come to the market. Which will create a recession in the capital market in the long term – he said. Foreigners are leaving the capital market Poor stock market, investors are destitute Credit flow should be kept positive to increase investment Ruhul Amin also said that investors’ confidence in the capital market is at zero. In this situation, the government has to take a long-term plan to restore the confidence of the investors. If there is a leak at the bottom of the pitcher, no matter how much water is poured, the pitcher will not fill. The holes through which the capital market money goes out like the leak of the jug must be closed.
Only then will the market do well in the long run. He said, there is no educated unemployed in the country, who is not related to this market. Starting from college and university students, retired government officials and even educated housewives are involved in the capital market. A market with which so many people’s fortunes are tied must be kept positive at all costs. We should forget the ambivalence and work unitedly for the sake of development. The stock market, one of the heart of the country’s economy, is under extreme threat today. Investors are constantly losing their capital. Many investors have already invested in the stock market and are sitting on the road. After taking charge of the current board of the Share Market Regulatory Authority, many new investors have invested in their various assurances and calls. But due to immaturity and lack of foresight, not taking action against some controversial groups, allowing rotten companies to list in the stock market and creating opportunities to extract unaccounted (huge) money from the market – etc., the unstable environment has been prevailing in the capital market for a long time. In this situation, we investors are in a very helpless situation. Ruhul Amin said that currently the country’s capital market is going through the worst period in memory. The common investors of the country are now suffering the result of the irregularities that have happened in the capital market for 15 years. Arbitrariness of listed companies, mismanagement of regulatory bodies, listing of closed companies by creating fake documents in the capital market, grabbing thousands of crores of rupees through syndicated placement trades, directors of closed companies selling their shares to common investors with fake and attractive false information and stealing money from the market. Common investors are forced to withdraw from the market due to various irregularities and the interests of small investors are not established.
He also said that in the last few months, investors have sold all shares from about 70,000 BO accounts and emptied the BO accounts. The above reasons are internal problems of the capital market. In addition to the internal problems, the macroeconomic pressure of the country has now been added. In the last two years, the dollar has increased by over 40 percent in the country. Ruhul Amin said that the current liquidity crisis in banks is obvious. Loan rates are not going down at all. The interest rate of the bank is increasing rapidly. Profits are more in treasury bills-bonds. Two-year Treasury bonds now have the highest interest rates. After four years, Bangladesh Bank has lifted the interest rate limit. Commercial banks and financial institutions will henceforth set their own interest rates on loans and deposits. The condition of the country’s non-bank financial institutions is even worse. Will the budget reflect public expectations? Prime Minister’s order to report the progress of projects dependent on foreign loans He said that the data of the central bank says that the defaulted loans of 17 financial institutions are more than 50 percent. Of these, 90 percent of the total loans disbursed by seven institutions have defaulted. Every day stock market transactions and indices are falling and investors are bleeding. This down trend of the market started from October 2021, which has accelerated even more now.
The demands made by the investors’ association
>> Provision of special allocation of 50 thousand crore rupees for the stability of the capital market in the upcoming budget. >> All types of IPO approvals should be stopped for the next one year.
>> IPO of techno drugs should be stopped.
>> Capital Gains Tax should be stopped.
>> Buyback law should be implemented.
>> Show cause notices like share prices rise, show cause notices fall
