The Parliamentary Standing Committee, on the Finance Ministry yesterday blasted the, Securities and Exchange Commission (SEC) blaming the capital market watchdog for the prevailing stock market depression.

Some of the committee members even went to the extent of suggesting dissolution of the present SEC board and restructuring it with participation of the private sector.

The standing committee later formed a tnree-member sub-committee to monitor the SEC functions and suggest ways for infusing sprite into the ailing stock market. The subcommittee has been asked to submit its recommendations within three months.

Mustafa Kamal MP has been made convenor of the subcommittee while two other standing committee men - MK Anwar and Masud Reza - have

been made its members.

“If necessary, the sub-committee may even go to the extend of recommending SEC restructuring to include private sector representatives in it," All Ashraf. Chairman of the standing committee, told The Dally Star after the meeting.

The meeting observed that the SEC had Tailed to implement the earlier decisions adopted by the standing committee for improvement of the share market.

“It (SEC) has failed to bring funds from the commercial banks to the market and also to set up a single private mutual fund? said another committee member.

The SEC officials present In the meeting tried to defend themselves by saying that the Commission had given approval to 25 merchant banks, some of whom have already started their operations.

“Besides, the commercial banks have been asked to form subsidiary companies to directly operate in the stock market. Currently a central bank regulation prohibits the commercial banks from directly operating in the market," an SEC official was quoted to have told the meeting.

But the standing committee members pointed out that most of the merchant banks were not participating in the market and the SEC. had failed to make •them work.

In the meeting, the Investment Corporation of Bangladesh (ICB) suggested appointment of market-makers who will deal with selected company shares. These marketmakers will quote two-way prices of shares for buying and selling., •

ICB also called for placement of a Tk 500 crore fund for the market-makers under the

supervision of SEC. which will be utilised for stabilising selected shares prices.

The Chittagong Stock Exchange (CSE) called for expediting the Central Depository System (CDS) and encouraging Independent credit rating companies.

They, also observed that investors should be educated through holding seminars and workshops. Radio, television and the print media need to be approached to focus more on the capital market with a view to helping restore investors' confidence.

Among others, CDS Chairman AKM Shamsuddin, Managing Director AGM Shamsul Kamal. DSE Chief Executive Officer GQ Chowdhury. SEC Member Muniruzzaman and Finance Secretary Dr Akbar All Khan were present in the n: :ct-tng.