Approves special purpose fund by SEC

The stock market regulator 13.02.2011 approved a trust deed and registration of a BDTk 500 crore special purpose fund. The Securities and Exchange Commission (SEC) gave the nod at a meeting, chaired by the commission's chief. Sonali Bank, Janata Bank, Eastern Bank Ltd and Investment Corporation of Bangladesh are sponsoring the First Bangladesh Fixed Income Fund, said an SEC spokesman. The sponsors will finance Tk 200 crore, while the rest will be raised through an initial public offering. While approving the fund, the SEC however attached a condition that the sponsors' portion of the fund will have to be utilized immediately in the stock market, which is now on the waning curve and suffering from a liquidity crisis.

On state shares Govt. changes mind

The finance minister has admitted that the decision to offload shares of state enterprises was not a timely step and some sections tried to cash in on it by reducing stock prices. But the decision has already led the General Index of Dhaka Stock Exchange (DGEN) to lose almost 950 points within two days, putting thousands of investors into despair. In the wake of the current stock market debacle, the government yesterday shelved its plan, for now, to offload shares of all state enterprises.

The Securities and Exchange Commission offered no explanation for the delay, but analysts said investors have no appetite for new shares. They said newcomers would drive down the prices of the existing shares. Analysts and bankers blamed a lack of coordination in the government for the free fall and said everybody understands that the problem is not with supply, but with confidence.