During the period from October to December 2001, eight brokerage
houses have been inspected based on some specific observations of
surveillance people monitoring daily share trading.
|Enquiry: Based on the above
inspection an enquiry committee was formed under section 21 of the Securities
and Exchange Ordinance, 1969 to enquire into the affairs of Mostaque Ahmad
Sadeque & Co (DSE Member) and Moharram Securities Ltd. (CSE Member).
Another enquiry was also initiated from the surveillance department to
enquire into the trading of fake shares of Al-Arafa Islami Bank.
|Surveillance: Constant real time monitoring of the trading of Dhaka
Stock Exchange Ltd. and Chittagong Stock Exchange Ltd. through non-trading
version of Work Stations is continuing unabated. The surveillance people time
to time inform the top management of the commission about the market
condition who then, if necessary, talk with the management of the respective
Exchanges. At the end of the trading, a report pointing out any highlight or
abnormal activity found during the trading is prepared and submitted to the
Chairman & others.
|Analysis of trading data: Post trading analysis is still continuing at the
surveillance department and in this connection relevant data and trading
information are regularly collected from the Exchanges based on which
analysis and calculation are done sometimes manually and sometimes with the
help of software. The purpose of this post trading analysis is to find out
the unusual behavior of trading. If any abnormal trend or volatility in terms
of turnover and price movement is noticed, a primary inspection is conducted
in order to ascertain the reason behind such volatility and when anything is
suspected wrong, the matter is referred to the higher authority for further
|Revision of Existing Index Calculation of both the Exchanges:
surveillance department observed that under the previous method of index
calculation there remained scope where one can easily influence market
capitalization and ultimately the all share price index only by trading least
number of shares of large capital base companies. On 31.10.2001 while
monitoring the daily trading data of DSE and CSE it was observed that all
share price index was moving upward as the gainers outnumbered the losers at
1.45 pm i.e. 15 minutes before the post closing session at
DSE, but the index came down from 652 to 648 only due to
trading of 100 shares of BATBC at 9.98 % reduced rate. As such, in
order to eliminate the scope of influencing the market capitalization with
the trading of minimal quantity of shares, the surveillance department
suggested for consideration of the market value of traded volume instead of
all share price based market capitalization to calculate the index.