Bangladesh to probe stock market crash

By IANS,

Dhaka: The Bangladesh government Tuesday formed a three-member committee to probe into the causes behind the collapse of its stock markets twice in this month.


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The committee headed by Khondkar Ibrahim Khaled, chairman of the Bangladesh Krishi Bank and former deputy governor of the Bangladesh Bank, was announced by Finance Minister A.M.A. Muhith.

Names of the other two members and terms of reference of the committee will be announced Wednesday, The Daily Star reported.

“The committee was formed hurriedly on Tuesday with the approval of the prime minister as she will leave the country in the evening for a five-day visit to Britain,” said Muhith.

Sheikh Hasina left for London on a six-day visit earlier in the day.

The two stock market crashes, that brought investors to the streets, fighting pitched battles with the police, are widely believed to be the caused by individual operators and firms with links with the opposition, a speculation that has been denied by the government.

The Securities and Exchange Commission (SEC) suspended six parties last week, and the High Court Tuesday upheld the SEC’s action.

A bench of Justice A.H.M. Shamsuddin Chowdhury Manik and Justice Sheikh Mohammed Zakir Hossain rejected writ petitions filed by five stockbrokers – Dhaka Bank Securities, NCC Bank Brokerage, PFI Securities, Alliance Securities and Management and IIDFC Securities.

The court decided to hear another petition filed by Al Arafah Islami Bank’s brokerage unit challenging the SEC’s order later.

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