DHAKA: Good governance is crying need for share market to bring back the confidence. The investors are not returning in the market due to lack of confidence as there was a long ups and downs.

M Moniruzzaman, Managing Director of IDLC Investments Limited recently discussed with banglanews in the various sides of share market. 

Some parts of the interview were given for the readers of banglanews….

Banglanews: Tell something about the present situations of share market.

Moniruzzaman: The ups and downs were continuing since longtime. And we are learning so many things from the situation but the main cause of this is confidence crisis in merchant invertors. Besides, margin loan was played an important role in the marker collapse incident which is still continuing.   

Banglanews: Is margin loan policy in present context logical?   

Moniruzzaman: Personally I think additional margin loan is harmful for investors and it will not bring positive result for those who are giving loan. The investors are not used to with margin loan in our country. There should be a system to restore the loan money and only then the margin loan policy would bring positive result.

Banglanews: Though force sell is not legal but merchant banks and brokerage houses were given directions to do that. What type of loses faced the merchant banks following the direction?   

Moniruzzaman: There was a prohibitory order from Bangladesh Securities and Exchange Commission (BSEC) and the upper level of the government in this regard. As a result, we faced a great loss. 

Banglanews: Was it wrong decision of the government to stop force sell? 

Moniruzzaman:  The decision was not correct at all. Force sell system was a part of good governance. It was formed in favor of share market but later becoming panicked, we broke policy which hampered our economics and crashed a system. 

Banglanews: For what reasons share market fall is not becoming normal?  

Moniruzzaman: The main cause of the present situation is lack of confidence among investors. The confidence is not returning to them due to lack of good governance. Besides, the absence of merchant investors, manipulation of various share companies, wrong audit reports, various rumors are playing as negative impact in this sector.

Banglanews: What measures can be taken at the moment to bring back the confidence in the market?

Moniruzzaman: Justice should be ensured of all irregularities to bring the lost confidence of each investor. The quality of company reports have to increase so that, by reading the reports people can get the proper information. If any irregularities or complains were reported on any media then steps have to be taken. 

Banglanews: Thanks you.

Moniruzzaman: Thanks. 

BDST: 1320 HRS, JUN 03, 2014