Dhaka Wednesday, December 7, 2022


Manipulation of the company's shares is closed!


Published:
2020-12-23 05:15:14 BdST

Update:
2022-12-07 02:21:12 BdST

Salman F Rahman, the leader of Beximco Group, a well-known businessman and industrialist of the country, was elected as a Member of Parliament from Dohar in the Eleventh Parliamentary Election. He is currently working as a private industry and investment adviser to Prime Minister Sheikh Hasina. Recently, he spoke with Business Tribune about the government's investment-financing, tackling the impact of Covid-19, business facilitation and the government's targets for achieving high economic growth and various strategies to implement it. Interviewed by Managing Editor 

The world's largest companies are trying to make a vaccine for coronavirus. Bangladesh has signed an MoU with Indian company Seram to get the vaccine. Beximco has contributed to this, which is also good news for our country. How would you rate the matter?

Salman F. Rahman: The advantage of this vaccine is that it has to be made at a temperature of two to eight degrees Celsius, which is similar to the common vaccine in our country. Our country has that infrastructure. A Chinese company is vaccinating people going abroad for corona. They took a ticker for লার 60. It is very expensive. The vaccine that is coming out in America is also very expensive. We have heard that the best vaccines are available for between four and six dollars. The Hon'ble Prime Minister directed to speak to Oxford. We contacted Oxford means AstraZeneca. They said they have licensed the Seram Institute to provide vaccines in Bangladesh. In other words, if Bangladesh wants to get vaccinated, it has to buy through the best. They will not sell directly to Bangladesh.

Then we contact the Serum Institute. They said, yes we will vaccinate Bangladesh. Then we tell the matter to the Prime Minister. "I want the vaccine to be available in India as soon as it is marketed," she said. Besides, we have to pay the price at which Oxford will vaccinate India. They agreed when we reported the matter to Oxford. As a result, we can convince them of both proposals. When we contacted Serum, they said that if you want to get vaccinated, you have to book now. Then we will keep the vaccine for you. Later we ordered three crore tickers.

As far as I know, there is no LDC country or those around our country, but they have not yet been able to book so many ticks in advance, I have never heard of such a thing. Thailand, Malaysia, Indonesia Ñ everyone is trying. But we have arranged a large amount of ticks, which no one in the region could. I would like to thank the Prime Minister for this. The Prime Minister is dealing with Kavid-19 very nicely.

 How much do you think Bangladesh's economy is recovering from the coronavirus injury?

Salman F Rahman: Bangladesh has turned around a lot economically. All the information we got was good. Speaking of the Foreign Exchange Reserve, speaking of exports, everything was fine, it was growing. But the second wave of corona is already coming in America and Europe. So it is difficult to say what will happen next. It is not yet understood what will be the impact on imports and exports. Hopefully the corona vaccine will be available by December-January. If the vaccine goes away, we will be able to return to normal next year. Corona has affected our economy. But hopefully we can recover it soon.

 Bangladesh is still doing relatively well in various economic indicators, such as remittances and exports কারণ what is the reason, what do you think?

Salman F Rahman: I have mentioned the issue of remittances. There are two or three reasons for this. One is that two percent incentive has been given in the last budget. But it is working deadly. The second is due to the Kavid-19 but the hundi business has declined a lot. If you want to do hundi business, you have to move with physical cash. It has to be done in both countries. The countries from which remittances came were all locked down. As a result, no one was able to move. As a result, the money that used to come through hundi started coming officially. Measures have been taken internationally, including in our country, to stop the hundi business. Now the two countries co-operate with each other. Earlier 30 to 40 percent of remittances did not come to the official channel, now it is coming, for which remittances have increased. The second reason is that those who are in big countries like America-Europe, who are in a good position, They have sent more money to their relatives at this time. Those who sent less have increased the amount of money. Those who did not send money at all, they also sent. Due to these reasons remittances have increased. Exports, especially garment factories, were closed for so long. Then the demands that came, we were able to meet. That's good news.

 At present the borrowers of the bank do not repay the loan but they are not defaulting till December. Due to this, the bad loan situation of the bank is also looking artificial. After the end of this facility in December, the amount of defaulted loans will increase a lot from January. What are your and the government's thoughts on this?

Salman F Rahman: Defaulted loans will not increase in January. If it increases, it will increase from March. It's a matter of concern. We are all thinking about it. Bangladesh Bank is looking into the matter. To my knowledge, the governor is working on it. We need to take information. You need to know the context before solving the problem. Let December end. If the time is extended, how it will be, who will benefit from it, will have to be decided. However, not everyone took advantage of this. Many have returned the money. Because even if you don't pay for one year, you have to pay interest. It's not forgiven.

I don't think everyone in Corona was equally harmed. Now we have to think for those who need this facility. A research needs to be done to give more benefits to those who have been affected. For example, in the case of restaurants, travel agents, resorts, etc., those who have not done business, they have to see. Some special benefits have to be given. Such a thing is being pondered, let's see.

On the other hand, we have to think about what will happen after the second wave of Corona. Observations and data collection are going on. As far as I know, the garments orders from Europe are not being canceled, they have told us to wait longer. Asked to hold. If the situation worsens on the second wave, these orders may be canceled. It cannot be said.

You said at a recent event that the Dhaka Stock Exchange (DSE) is manipulating in front of your eyes. If you explain the matter.

Salman F. Rahman: I didn't really comment. I was talking about closed companies, which have not been able to operate for a long time. There are some companies that are not in production or are closed, although the number of such companies is low. There are some identified companies whose share prices fluctuate at an abnormal rate

There is no reason to increase the share price of such companies. As a result, these share prices are not supposed to increase. Similarly, the share price-to-earnings ratio of such a company should not be too high (high P-E).

Then it is seen that sometimes these share prices rise at an abnormal rate. They can't say any reason for the price increase. In this way, it is seen that the price goes up and goes down at one stage and then goes down again. Later it was seen that the share price of the company increased again with a break of two-three months. I mean, you have to trade shares through a broker. Since shares are traded through them, they know all the information. Brokers know who is buying which shares or who is selling which shares. My point is, when the shares of a closed company are traded abnormally, when a customer is buying shares today at Rs 10, tomorrow at Rs 12, the next day at Rs 15, do they not wonder why the share price is rising or falling? Besides, who sold shares when the price went up, who bought again when the price went down, Brokers have all such information. However, the Securities and Exchange Commission is to catch it. But all this is happening under their noses in front of the DSE, so I said. I mean the responsibilities of brokers. I talked about the closed company. Usually such activities happen with low capital and 'Z' category companies. The shares of these companies are manipulated. Shareholders do not receive any dividends from these companies. Besides, such companies do not submit their financial statements. I actually talked about these companies. Didn't say anything in a pouring way. I am very careful when talking. My statement has been presented differently. Now everyone thinks I said it in a pouring way, but that's not the point. That's what I said. I mean the responsibilities of brokers. I talked about the closed company. Usually such activities happen with low capital and 'Z' category companies. The shares of these companies are manipulated. Shareholders do not receive any dividends from these companies. Besides, such companies do not submit their financial statements. I actually talked about these companies. Didn't say anything in a pouring way. I am very careful when talking. My statement has been presented differently. Now everyone thinks I said it in a pouring way, but that's not the point. That's what I said. I mean the responsibilities of brokers. I talked about the closed company. Usually such activities happen with low capital and 'Z' category companies. The shares of these companies are manipulated. Shareholders do not receive any dividends from these companies. Besides, such companies do not submit their financial statements. I actually talked about these companies. Didn't say anything in a pouring way. I am very careful when talking. My statement has been presented differently. Now everyone thinks I said it in a pouring way, but that's not the point.



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