 | SEC 'intervened' to stop stock plunge
19 December, 2010
As the Dhaka stock exchange plunged on December 8, it sent panic down the spine of the securities regulator which pleaded top institutional players to make purchase in a desperate bid to halt the slide, officials said Saturday.
An official of the Securities and Exchange Commission (SEC) admitted the regulator "sought help" of state-owned banks, big brokers and private merchant banks after the DSE's benchmark index plunged 547 points or 6.37 per cent in 80 minutes of panic selling.
"Institutional investors have some responsibilities to keep the market stable. That's why, we requested them to buy shares to overcome the crisis," said the official, speaking on condition of anonymity.
Merchant bankers have told the FE that they "received flurry of phone calls" from SEC officials after the market went on a free-fall, setting off wildcat protests by thousands of retail investors in Dhaka and six other district towns.
"We are requested to buy shares to overcome the most critical moment," said a merchant banker, who asked not to be named. He said fresh investors pushed the panic button first by "selling abruptly".
Release link:http://www.thefinancialexpress-bd.com/more.php?news_id=120370&date=2010-12-19
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