Betting, brokers behind the scene

Kay and Que, recorded on the Dhaka Stock Exchange as a Z class share, climbed a stunning 293 percent in 2017. Moreover, Dulamia Cotton Mills increased 223 percent and Savar Refractories 193 percent around the same time. 

Then again, the blue-chip share record, DS30, speaking to the loads of the expansive, settled and fiscally stable organizations, increased 25.32 percent. 

Authorities of the Bangladesh Securities and Exchange Commission called attention to two factors behind the strange ascent in the cost of the Z classification shares. 

In the first place, a few financial specialists incline toward Z class shares. Second, a couple of stockbrokers help financial specialists in purchasing the most noticeably bad performing shares, giving them edge advances and offer netting openings in a rupture of standards. 

The edge advances and the offer netting openings make buildup about the Z class shares, said an authority identified with the examination of the BSEC. 

The Z class is an exchanging stage for most noticeably awful performing organizations. An offer is assembled in this classification if an organization is out of activity, does not report a profit for a year or does not hold yearly broad gathering. 

In 2009, the BSEC gave a mandate not to stretch out edge credits to purchase Z class partakes keeping in mind the end goal to get control over their anomalous value climb. A BSEC examination group found that no less than 10 intermediaries stretched out edge credits to financial specialists to purchase Z class partakes in 2017 and 2018 and were appropriately punished. 

The controller likewise found that Dynamic Securities Consultants, Hedayetullah Securities and Associated Capital gave share netting chances to purchase Z class shares, again infringing upon a BSEC mandate. They were punished as well. 

Offer netting is a budgetary change office that licenses financial specialists to purchase and offer offers of a similar organization around the same time. 

"These stockbrokers don't speak to the more extensive stockbroker group," said Mostaque Ahmed Sadeque, leader of the Dhaka Stock Exchange Brokers Association. 

Here and there a couple of authorities turn to bad behavior yet it brings awful notoriety for all stockbrokers, he included. 

"The cure is the little top board that is taken after around the world," said Mohammed Rahmat Pasha, CEO of UCB Capital Management. 

Institutional financial specialists would make exchanges in the little capital board no one but, which could control the irregular value climb of Z classification shares. The DSE is attempting to set up a little capital stage. 

"We can't prevent individuals from purchasing these kinds of offers. We can just bring issues to light," said Saifur Rahman, representative for the BSEC. 

Be that as it may, if a specialist helps financial specialists in purchasing Z class shares the BSEC will punish them, he included.