Finance Minister AMA Muhith yesterday condemned the activities of the merchant banks in the share market and said that they have no moral rights to go for forced selling.

“The country presently has no law to restrict them for doing so, although, I dislike forced selling by the merchant banks the most,” the minister said adding: “They have no moral rights for such activities.”

He was speaking to the reporters after a meeting with the communication and bridge division at the Finance Division conference room yesterday.

Muhith said he will sit with the merchant banks on Friday to discuss the issue. He also said the concept of the merchant bank is new for us and we are learning from this new kind of banking. “I think their equity must be increased and I will also make a guideline for them,” he added.

He also said greed sometimes goes beyond limit when it comes to profit making. ‘The regulatory bodies are there to control this kinds of greed,” he added.

Commenting on recent price correction in the share market, Muhith said it has experienced enough corrections, and it is going to be stable. The crazy upward trend is also not right, he opined adding: “Increase in share price index by 500 points in a day is also an act of craziness”.

The Finance Minister said that decision on offloading shares of the state-owned enterprises (SoEs) will be taken in March this year. Offloading of shares of two companies –Meghna Petroleum and Jamuna Oil Company-scheduled for February 22 will remain suspended, he added.

Replying to a query, Muhith said he has temporarily suspended the offloading of shares of the SoEs because of the media report and the comments by so-called experts.

“I have suspended the decision of offloading the shares, but not cancelled the move ... it is only stopped for the moment,” he said. As soon as I think stability returns in the market I will do it”, he added.

On Monday, the SEC announced the suspension of the decision on offloading shares of 21 SoEs considering the latest market situation.

Muhith informed that they would enact a law in parliament to bring the institutional investors under obligations so that they properly act in the share market. “We could only request them, but many of them do not follow our requests absence of law,” he added.

In reply to another query, he said the government has taken initiatives to force the investors, who made profits in share business to re-invest funds in the market.” We can only pursue, but don’t have the authority to force them, he said. “I hope I will have it in a few months time,” the minister expected.

In a query on whether the Investment Corporation of Bangladesh (ICB) is using taxpayers money to buy shares, Muhith replied in the negative.

As part of its initiatives to improve the share market situation, the government has provided Tk 2 billion to ICB for buying shares.

News: daily Sun/ Bangladesh/ Feb-16-2011