DSE Brokers Association of Bangladesh (DBA), has raised allegations of widespread corruption and irregularities against former chairman of Bangladesh Securities and Exchange Commission (BSEC) M Khairul Hossain and Professor Shibli Rubaiyat-ul-Islam.
The organization claims that the chairman of Bangladesh Securities and Exchange Commission has been doing unprofessional and unethical activities for a long time. As a result, the market did not improve, but investor confidence reached rock bottom.
On Monday, allegations of corruption and irregularities were raised against BSEC in a press conference titled 'Current and future plans of the country's stock market'. President of the organization Saiful Islam spoke on behalf of DBA in the press conference.
Saiful Islam said, "We believe that this government (interim government) will work to build a non-discrimination, corruption-free and developed state. They will make the country financially prosperous by ensuring good governance at all levels. We are ready to give all kinds of support to this government on behalf of our organization for the development of the capital market."
Millions of investors lost their capital after the stock market crash in 2009-2010. Many institutions that provided margin loans for buying shares went bankrupt. Since then, as the market situation did not improve, millions of investors left the market after facing repeated losses.
An inquiry committee was formed under the leadership of the then former Deputy Governor of Bangladesh Bank late Ibrahim Khaled to find out the cause of the market collapse and the culprits.
No action has been taken against the individuals and institutions involved in the market manipulations revealed in their investigation report till date. As a result, the manipulative cycle became more active and siphoned off huge money.
For about 14 years from 2011 to 2024 Dr M Khairul Hossain and Prof Shibli Rubaiyat-ul-Islam served as chairman of Bangladesh Securities and Exchange Commission. Both of them came from the university teaching profession and occupied this position.
In this long time their unprofessional and unethical activities did not improve the market but the confidence of the investors reached the bottom.
DBA president said, "After the market collapse in 2010 Dr. M Khairul Hossain and Professor Shibli Rubaiyat-ul-Islam took action to stop insider trading in the market, to ensure transparency, good governance and accountability in the market to prevent manipulation.
They also attempted to bring back confidence of investors in the market by bringing good quality IPO, to stop terrible anarchy like placement trade, transparency in audited financial reports of companies. But they failed to deliver to ensure accountability. Regrettably, their personal involvement in each of the above irregularities has been observed.
He said, "An institution called Capital Market Stabilization Fund has been formed, the legality of which is questionable. The company was formed at the behest of the then government and allegedly defrauded investors of dividend money. We demand the closure of this establishment and the immediate return of those whose money has been taken."
