Experts warn the move may provoke aggressive trading
The Chittagong Stock Exchange has declared incentives for investors based on their turnover through the bourse’s internet trading service that may provoke aggressive trading.
Capital market experts said that the Bangladesh Securities and Exchange Commission should examine the legal aspect of the matter. The CSE last week announced that the bourse would award laptops to top three investors on the basis of total ITS turnover from September to December, 2014.
The bourse also declared three nights and four days visit to Thai Stock Exchange of Thailand for top 10 brokers who will achieve a minimum turnover of Tk 160 crore in the four months.
Top five brokers based on their turnover through the bourse’s internet trading service will be awarded five latest model laptops, the CSE announcement said.
BSEC officials said that the bourse was yet to take any regulatory approval in this connection.
Any such business promotion activity, if the securities rules permit, has to be launched after getting consent from the regulators, they said.
They said that the BSEC was yet to check the legal aspect of such activities.
Former BSEC chairman Farook Ahmed Siddiki told New Age, ‘The step of the bourse is not fair as it may provoke investors into trading aggressively.’
He said, ‘The capital market regulator should examine the matter.’
AIMS of Bangladesh managing directors Yawer Sayeed told New Age that as the bourse was passing tough time in terms of making profit, it could declare incentive for its brokers.
‘The idea of offering incentives or gift by any stock exchange for investors based on their turnover is not acceptable,’ he said.
The capital market regulator should take the matter into consideration for examining its legal aspect, he said.
Asked, CSE managing director Syed Sajid Husain told New Age that the bourse made the move in a bid to gear up its business and profitability.
As the bourse turned into a profit-oriented organisation after the demutualisation, the initiative was taken, he said.
BSEC executive director Saifur Rahman said, ‘We will check the legal aspect of the issue.’
-With New Age input
