Five Banks’ Share Trading Suspended
The decision follows Bangladesh Bank’s dissolution of the boards of these banks on Wednesday and the appointment of administrators to assume management control.
Trading of shares in five Shariah-based banks undergoing merger procedures has been suspended, the Bangladesh Securities and Exchange Commission (BSEC) announced on Thursday (6 November).
According to sources at the Dhaka Stock Exchange (DSE), investors were notified only a few hours before trading began at the country’s two stock exchanges.
The five affected banks are First Security Islami Bank, Social Islami Bank, Global Islami Bank, Union Bank, and Exim Bank.
The suspension follows Bangladesh Bank’s decision on Wednesday to dissolve the boards of these banks and appoint administrators to assume management control. During a press conference, Bangladesh Bank Governor Ahsan H. Mansur declared the shares of these banks “worthless,” cautioning that shareholders would not receive any compensation due to the institutions’ dire financial condition.
The BSEC’s delayed decision has drawn sharp criticism from market insiders, who argue that the regulator failed to act promptly, thereby exposing investors to avoidable losses.
Analysts contend that once the government decided to merge these banks, BSEC should have immediately halted their trading to safeguard unsuspecting shareholders.
The suspension underscores the systemic vulnerabilities within Bangladesh’s banking sector and raises pressing concerns about regulatory oversight and investor protection in the nation’s capital markets.
What's Your Reaction?
