| Author | Alam, Syed Golam Shahjarul |
| Note | A thesis submitted in partial fulfillment of the requirements for the
degree of Professional Master in Banking and Finance |
| Publisher | Asian Institute of Technology |
| Abstract | The Capital Market of Bangladesh is passing tough times since December 2010 as high
volatility is eroding the capital of Thousands of Investors that might turn into social
instability. This fall is caused by many factors that I tried to identify and tried to link up
between causal factors of market crash and regulatory failure. Primary issue related
problems was faulty listing methods and IPO overpricing, few numbers of new listings,
revaluating assets before company listing, high premium in issuance of right share/Repeat
IPO etc. while secondary market related problems was stock splits and stock price
manipulations through block trading, circular trading and insider trading. Investor's greed
and irrational behavior played a big rule to make the stock prices sky rocking as they were
crazy to buy shares without judging the company fundamentals. Shares of the companies
with closed operations and big accumulated losses were rising constantly due to investors
high risk appetite that caused them to loss everything. Government had already taken many
steps (including SEC reforms) to stabilize the market but failed as investors confidence is
in the bottom level. Government and regulators should work together to identify the main
speculators and should brought under proper trial to bring investors back to the market.
Regulator should make reforms on Listing procedures and other faulty regulatory
frameworks to ensure transparency and efficiency in the capital market and also should
bring clear guidelines regarding Private Placements, Asset Revaluation, Insider Trading,
Dealing with Omnibus Accounts etc. |
| Year | 2012 |
| Type | Thesis |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Chairperson(s) | Venkatesh, Sundar ; |
| Examination Committee(s) | Winai Wongsurawat ;Badir, Yuosre ; |
| Scholarship Donor(s) | Bangladesh Bank (Central Bank of Bangladesh); |