Trillions Embezzled from Stock Market in Hasina Regime: White Paper Analysis
A recent White Paper report has shed light on the alarming amount of money that was embezzled from the stock market during Sheikh Hasina’s regime. The draft report, delivered to Chief Adviser Professor Muhammad Yunus, exposes how heavyweights involved in the banking system also contributed to the downfall of confidence in the share market.
The White Paper committee’s findings revealed that trillions of takas were siphoned off from the stock market through various unethical means like fraud, manipulation, placement shares, and deceptive practices in the IPO process. This has raised serious concerns about the oversight and regulations governing the market during that time.
The report points to a lack of government oversight that hindered market development and allowed for the entry of weak and dubious companies through flawed IPO processes. The dominance of vested interests fostered a culture of gambling and fraud, undermining the integrity of the market.
The White Paper also uncovered a network of manipulation involving influential entrepreneurs, issue managers, auditors, and certain investors. Surprisingly, even officials from the Bangladesh Securities and Exchange Commission (BSEC) were found to be complicit in exploiting legal loopholes or providing undue concessions.
One of the major issues highlighted in the report is the disproportionate advantage given to sponsors in IPO valuations, which puts general investors at a disadvantage in the secondary market. Settlement delays, lack of adequate IT infrastructure, and transparency issues were also noted as key shortcomings in the current market systems.
Market rigging was found to be rampant, with powerful investors and institutions artificially inflating share prices in violation of securities laws. Some prominent mutual funds were reportedly taken over by vested interests, leading to allegations of embezzlement and a sharp decline in investor confidence.
The report suggests the urgent need for regulatory reform to address these issues and restore trust in the stock market. It emphasizes the importance of transparency, accountability, and investor protection to ensure the long-term sustainability of the market.
