DBA welcomes BSEC decision
Reactivation of frozen BO accounts expected to boost stock market trading
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The Dhaka Stock Exchange (DSE) Brokers Association of Bangladesh (DBA) expects trading activity and liquidity in the stock market to increase following the decision to reactivate long frozen BO (Beneficiary Owners) accounts and allow transactions through them.
The organization believes that reactivating these accounts will allow shares that have remained locked for a long time to be traded again. This will increase investor participation and play a positive role in restoring confidence in the capital market.
The DBA has expressed its appreciation and gratitude to Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan, commissioners and relevant officials for taking the decision.
The organization expressed its reaction in a press release issued on Wednesday.
According to the press release, a total of 617 BO accounts had been suspended following requests from various government agencies and decisions by the commission. As these accounts had remained inactive for a long time, the investors concerned were deprived of the opportunity to trade their shares.
Considering the matter, the DBA submitted a written application to the BSEC chairman on July 20. In its application, the DBA stated that arrangements should be made to reactivate BO accounts that had remained suspended for a long time, provided there were no restrictions imposed by any court of law or relevant regulatory or government agency.
Taking the organization’s application into serious consideration, the commission decided to reactivate the accounts and allow transactions. DBA President Saiful Islam expressed gratitude to the BSEC for the decision.
The DBA believes that reactivating the suspended BO accounts will bring a substantial volume of shares that have remained locked for a long time back into trading. This will increase liquidity in the market and create opportunities for higher trading volumes. At the same time, active investor participation will increase, potentially helping restore their confidence in the capital market.
The organization also believes that stockbrokers and merchant banks providing margin loans will particularly benefit from the decision. These institutions have faced financial and business difficulties due to negative equity and shares remaining locked for a long time. The decision will create an opportunity for them to overcome these challenges. Restoring the opportunity to trade shares will make it easier for the institutions concerned to maintain their financial capacity and business continuity.
According to the DBA, increasing investor participation and liquidity in the market is essential to restoring normal activity in the capital market. The decision to reactivate accounts that have remained suspended for a long time will play a positive role in this regard.
