DSE to probe scam allegations

Dhaka Stock Exchange has decided to launch an internal committee to investigate the allegations that were raised against the bourse in a probe report on the recent stockmarket scam.

“It was decided in a board meeting of the bourse that an investigation committee will be formed with non-elected directors of the DSE after the government releases the probe report officially,” said a DSE director, who was present at the meeting on Thursday.

Although the share scam probe report is yet to be released officially by the government, the media published the report. The report alleged that some member of the DSE got price sensitive information prior to legitimate declaration and made hefty profit.

“The DSE committee's prime responsibility will be to find out the members and officers, who got prior information and reaped financial benefit,” said the DSE director asking for anonymity.

All members present at the meeting denied the allegations of the probe report and claimed it was not true, while some members said it is not an investigative report at all.

“We will take action on the allegations of the probe report for the greater interest of the market,” said a member, who was present at the meeting.

Some directors claimed that the report has no specific allegations because share placement business was not illegal.

The omnibus account is a matter of merchant banks and investors would get only statements at the end of the day; so how the probe committee could name people for manipulating in disguise of an omnibus account, said a director.

“The report named 100 people without hearing, so we can say that it is not ethical,” a DSE official said.
Some of the directors claimed that the probe report is a substandard document, which is enough to defame the government.

They claimed that the focus of the probe committee was to investigate why the market crashed, but there was “no clear mention of it” in the report.

“Investors want to know why the market experienced such a big debacle, but the committee failed to fulfil the expectations,” said another director, asking not to be named.

“I know some investors, who have bought more than Tk 10 crore shares of one company but the probe committee did not mention their names.”

“I have no idea why the probe committee did not name them,” he added.