Investors again take to streets as DSE dips,

FE report

Part of the evil investors went on the road at Motijheel in the city again Sunday as the Dhaka stock exchange (DSE) was still a more massive securities fall despite announcement via the stock exchange rejuvenation package by the regulator.

The Securities and Exchange Commission (SEC) has introduced package Wednesday rejuvenate the stock market.

"But all positive steps to rejuvenate the capital market, to leave positive impact on the market." Rather the decreasing tendency has many investors, disappointed, "Said broker."

At the end of four-hour trading plunged the DSE general index to close 308.12 points or 5.73 per cent (DGEN) on the day on 5,065.17, while TK the value of turnover amounted 4.51 billion.

The winner, traded from 254 issues, only seven advanced and 247 rejected beats up the losers.

The frustrated investors came from various brokerage firms and at the main gate of the DSU about 14: 00, when the DGEN by more than 200 points fell, collected.

They chanted slogans against the DSE President, the Bangladesh Bank Governor and the Minister of finance for their failure to stability in the market to bring back.

The heads of State and Government of Bangladesh parts investors Unity Council (BSIUC) one demonstration held and brought a procession to protest against the share price reduction.

You threatened also to a large rally on 7 December at the DSE organize, when the Government not to back normalcy in the stock market within 72 hours.

The investors claimed that some large operators and players may be a role behind the falls of share prices and the Government urged, without delay effective measures.

Also called the SEC to investigate whether price reduction involved evil player of the unusual share and save the capital market from the clutches of the vested quarters.

BSIUC President AKM Mizan-ur-Rashid Chowdhury said: "If the Government a 21-point stock market rejuvenation package Stablise the market announced, try a group of vested quarter to make the market volatile and to buy shares at a lower price."

Later, she brought a procession which marched out of the Office of DSE, Shapla place.

Vehicle movement from the Shapla square, Ittefaq crossing was sealed off but normal, such as additional police officers the whole area and brought the situation under control without any unwanted incident.

Yawar Sayeed, managing director and CEO of the objectives of Bangladesh, an asset management company, said the vu, "If the Government some positive has taken, the small investors not patience steps."

Mr Sayeed said "The small investors rational behavior should when the Government took over all positive steps for the Stablise the market".

"The measures taken by the Government will take some time to come into force;" It is a reality. But our investors do not respect, patience and panicked the are is very unfortunate, "commented Mr Sayeed."

AB Mirza Azizul Islam, former Minister of finance adviser to the interim Government, the VU said: "there is no valid reason for market fall as the Government a series of positive measures took the market to Stablise."

Investors should rationally and make their investment in fundamentally strong stocks, Mr. Islam, as a former Chairman of the Board who said SEC.

Institutional investors have been almost inactive before the serving their accounts in the financial statements, which was also a cause of the market fall, he said.

However, he said, can go to the banks for new investments in January and February.

"Easing the different rules in the bailout apparently is greater participation of banks in the market not yet the plunge with the commercial value see TK 5.0 billion, bear", a stockbroker said.

On the contrary, a combination of aggressive profit-taking and tendency of traders in the safe zone in the midst of uncertainty surrounding the country's macroeconomic condition led to to remain massive fall, he added.

Source: thefinancialexpress-bd.com

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Scrap money-whitening facility for stock investors

The Financial Action Task Force (FATF), a global body to combat money laundering and terror financing, has asked the government to scrap the existing money whitening facility offered to the country's stock investors.

The FATF has said Bangladesh may be identified as a "risky country" such as North Korea in global financial transaction if the government fails to drop the provision immediately

A plenary meeting of the FATF, held in Paris on October 27-28, made the recommendation against the facility, which has been offered by the government in the budget for the current fiscal in an effort to boost the flagging stock market.

A three-member delegation, headed by Deb Prasad Debnath, General Manager, Anti-Money Laundering Department, Bangladesh Bank, represented the country in the meeting.

"We faced strong criticism from FATF and its influential members from European countries for offering money whitening facility in the capital market," a delegation member, told the FE on Monday.

"The FATF has asked us to scrap the scheme to avert being listed as one of the risky countries in the world like North Korea for financial transaction," the delegation member added, requesting anonymity.

He said a high-level team of FATF would visit the country in November and discuss the issue with the government.

The FATF has decided to refer the controversial scheme to International Cooperation Review Group (ICRG), a specialised professional body under the global task-force, before "blacklisting" Bangladesh, a government official said.

The FATF later disclosed the outcome of the meeting in its report.

'The FATF heard a report on the voluntary tax compliance (VTC) programme in Bangladesh (which has been enacted since July 2011 and is currently scheduled to complete in June 2012), and its possible negative impacts on AML (Anti-Money Laundering)/CFT measures in the country," the report said.

"The FATF also heard an update from the APG on the reviews and actions that it has taken in relation to this issue," it said.

"As there are concerns about the potential impact of the VTC programme on the effective application of the FATF standards, the FATF decided to refer consideration of the VTC programme to the ICRG, in the context of its ongoing process concerning Bangladesh," the report, posted in its website, added.

In his budget speech, the finance minister said no question will be asked from any agencies including tax department if anybody invests his or her undisclosed money in the capital market paying a 10 per cent tax against the whitened amount.

But following strong reservation from the FATF, the government brought some amendments to the offer in August, empowering some agencies excepting the tax department to question or investigate the sources of undisclosed money.

However, the effort failed to cool the FATF concerns.

"We could not satisfy the FATF despite the changes in the original offer. It seems the FATF has taken a strong position against the existing facility on the money whitening offer," said a finance ministry official.

The FATF is an inter-governmental body whose purpose is to develop and promote policies, both at national and international levels, to combat money laundering and terror financing.

The Task Force is a "policy-making body" which works to generate the necessary political will to bring about national legislative and regulatory reforms, the official added.

Earlier, Financial Action Task Force (FATF) in a report in 2010 said Bangladesh is still non-compliant in at least 10 key areas in attaining international standard against money laundering and terror financing.

The government had formed a National Coordination Council, headed by Finance Minister AMA Muhith, to implement the recommendations of FATF to combat money laundering.

The government finalised an Action Plan early last year outlining measures to combat the money laundering as recommended by FATF and Asia Pacific Group (APG) on Money Laundering.

The major areas included in the action plan are bringing amendments to Anti Money Laundering Act 2009 and Terrorist Financing Act, 2009, including the issues of anti-money laundering and terror financing in the existing Extradition Act, enacting Mutual Legal Assistance Act and ratifying the UN Convention against Transnational Organised Crime (Palermo Convention) and ratifying the UN Security Council Resolutions, 1267 and 1373.

A senior official in the finance ministry said, the finance minister is concerned over the latest development.

He, however, said if the money-whitening facility is withdrawn, it could cause widespread dissatisfaction in the capital market, which the government cannot afford under the prevailing circumstances.

Source: thefinancialexpress-bd.com

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