Bse To Sign Mous With Bangladesh Bourses

The Bombay Stock Exchange (BSE) is all set to sign a memorandum of understanding (MoU) with two stock exchanges in Bangladesh next month, according to BSE president M G Damani.

Damani, who visited Bangladesh early this month, said representatives from Dhaka and Chittagong stock exchanges would be visiting the BSE next month to sign the MoU. The BSE will advise the two exchanges in maintaining the integrity of business.

"This agreement will be in the spirit of Saarc, and the BSE will not find it difficult to render help to the exchanges as the two countries share a historical background," Damani told newspersons after the exchange's board meeting here yesterday.

 

According to Damani, the Bangladesh stock exchanges had witnessed some of the worst moments, where the kerb deals were held longer than the floor trading and in a span of 45 days their index rose from 1100 points to 3,600 points and immediately, within a span of 30 days it plunged to 900 points.

The country had also witnessed flight of foreign institutional investors who had earlier actively participated in the kerb deals, he said.

"In fact, the kerb delas were being held for over eight hours a day, while floor trading was only for two and a half hours," Damani said.

The exchanges were loosing their integrity in the light of very high speculative trading, he added.