Share Market:Forced Sale on ignoring PM directive
The agencies concerned have put a deaf ear to the requests of the Prime Minister Sheikh Hasina she made to the brokerage houses and merchant banks not to go for forced sale of the shares owned by the already pauper investors.
On Monday shares worth Tk 70 lakh kept in the portfolio by one investor Abu Hanif were sold forcibly by Sohel Securities by the brokerage house at Chittagong Stock Exchange (CSE). Not only that his share were sold in such a manner that now Sohel Securities demanding more Tk 23 lakh due to him.
Under these circumstances, finding no other alternative he has sent a letter to Securities and Exchange Commission seeking release in such an unjust dealing of the Brokerage house.
Abu Hanif told that there are more investors who have become penniless by investing in the share market. At last they are now on the streets being the victim of forced sale. Many are leading sub-human life, he said.
They are so much broken down that now they hate to identify them that once they invested in the share market. Again some after being totally frustrated a few have chosen to kill themselves.
On the other hand, as there is no law forced sale cannot be checked. Regulatory Body SEC Chairman Dr M Khairul Islam called upon the brokerage houses and the merchant banks not to go for forced sale. But, that could not produce any result resulting increase in the number of pauper and penniless investors.
When asked about forced sale to the Managing Director (MD) of Sohel Securities Shahjahan told to contact later on. Whether he knew anything about forced sale he disconnected the phone line without giving any reply.
According to market analyst, as the SEC had nothing to stop the forced sale legally the concerned organizations are out of their grip. But, the brokerage houses and merchant banks should realize that their existence solely depend on the investors. So, bearing the temporary load they should refrain from this inhuman practice of forced sale system.
Moreover, a kind of panic becomes active among the investors due to forced sale. After analyzing the market situation of last two days it was observed that though there was indication for the institutional investors to invest but market showed downward trend.
Not only Sohel Securities many more organizations went for forced sale. In February last EBL securities put on shares of one Tajuddin worth Tk 37 lakh on forced sale. Again the EBL demanded more Tk 84 thousand from the wretched investor.
Earlier in last May Hack securities put on forced sale of the shares of few hundred investors. The organization committed a great fraud in this case.
Brokerage house manufactured false sale order by forging the signatures of the investors. The brokerage house painted the foul play as normal sale order.
Last year the forced sale panic prevailed in the capital market when the share marked nose dived. To this Finance Minister AMA Muhith in a meeting held with SEC and merchant banks termed forced sale as unethical.
Next in November last SEC made a call to marginal credit lending organizations to stop forced sale. SEC requested the brokerage house to stop forced sale on the basis of the complaints of the investors.
Simultaneously the brokerage houses were warned that actions would be taken for not stopping forced sale. But, no action was taken by the SEC so far.
The investors told when the market was very upward they invested after selling everything their last farthing. But, no one cautioned that the market might have great fall. Many investors invested by arranging capital with margin loan.
As the market was on very rising trend the brokerage house gave pushing loan. Next when the market started sliding the houses started forced sale.