Muhith admits mistakes
United News of Bangladesh . Dhaka
Following continued steep falls in the capital market, the finance minister on Friday admitted that there was apparently something amiss from his side and also the Securities and Exchange Commission in controlling the volatile market and also creating confidence among the investors.
‘Apparently, there was something amiss from the SEC. I must have also erred. We are trying to identify the mistakes,’ AMA Muhith said while talking to the reporters at the Finance Division conference room.
He said they would try their best to avoid making mistakes in future. ‘We’ll have to find something in next two days.’
The finance minister said he would sit with the stakeholders concerned on Sunday to discuss the present situation of the volatile capital market.
Blaming the institutional investors, he said the institutional investors reaped the benefit and had now disappeared from the scene.
Muhith said: ‘Liquidity is not the problem in the market, the problem is of confidence. It is our major duty now to instill confidence among the investors.’
He said the SEC made changes in its decisions to create confidence but it did not work. ‘The main duty now will be to create confidence to bring back stability. Correction is a normal thing in the market, but that should come gradually.’
Replying to a question, the finance minister said the stock market was not overheated. ‘But one may say it is overheated after seeing the market movements in the last 4-5 weeks with so many ups and downs.’
Asked about the government’s hunt for the manipulators, he said they are looking for the manipulators.
Replying to another question, Muhith said after assuming the office he took the initiative to bring the culprits of the 1996 share market debacle to justice. The problem was to find witnesses as no one wants to testify ‘A case is already there, but if there is no witness how we’ll proceed.’
He said the state-owned enterprises could have offloaded their shares but they did not do so. ‘It is unfortunate.’
The finance minister observed that the circuit breaker and the margin loan facility also did not have much impact in stabilising the market.
He told a questioner that creating confidence among the investors not only depends on government tools. ‘It is more than that. We are trying to find a way out.’