SEC ought to be stringent
Photo: Amdadul Huq / driknews
Thanks to our Finance Minister for his timely intervention to quell the capital market which has been going through a rough-and-tumbled weather due to massive slides in the prices of almost all shares. The minister came up with proposals on how to bring reforms and revitalise the market and safeguard the interest and confidence of the investors. We earnestly hope that his concrete and meaningful suggestions will help to alleviate the hitherto dwindling market and bring stability and confidence, especially amongst the retail investors. His package of reforms is indeed laudable provided those are implemented immediately and monitored correctly on a regular basis. His scraping of book building systems for the time being is also a good step which has been until now manipulated by a few companies. We think that SEC should thoroughly examine the prospectus and financial status of these companies and then fix a series of prices depending on the investors which price they choose in buying and then fix that price. However, it has been seen that the companies by manipulating Joint Registrar of Companies, Issue Managers, Lead Managers fixes the prices on their own (the case of Westin Hotel) which goes totally against the established practices of book building systems. We hope that SEC will be more stringent so that this practice does not surface again when it comes into effect again.
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