Staff Correspondent : The Bangladesh Securities and Exchange Commission (BSEC) has urged the Dhaka Stock Exchange (DSE) to make its market surveillance and investigations more evidence-based, warning that indiscriminate information requests and unnecessary investigations can spread fear among investors and disrupt trading.

At a meeting with the DSE’s senior leadership on Sunday, BSEC stressed that investigations into suspected market manipulation and other irregularities must continue, but should be guided by specific information and credible evidence rather than broad inquiries that could unsettle the market.

Sources familiar with the meeting said recent investigations into the shares of several companies had triggered concern among investors. The DSE had reportedly sent repeated letters to brokerage houses seeking information, with news of the requests spreading through the market. Some medium and large investors subsequently scaled back their activity or withdrew investments, affecting share prices and trading.

BSEC advised the DSE to use a more targeted, data-driven approach to identify suspected manipulation. Rather than routinely issuing letters to collect information from investors and brokers, the exchange should first examine its surveillance system, verify suspicious trading patterns and establish preliminary evidence. More detailed information should be sought only when the initial review indicates specific grounds for further investigation.

The regulator also emphasised that investigations must be objective and supported by sufficient evidence. Reports lacking substantive findings, data or proof may not provide a sound basis for regulatory action. Investigators were advised to consider market conditions and investor sentiment while ensuring that no investor is unnecessarily harassed in the name of surveillance.

BSEC Chairman Masud Khan presided over the meeting, which was attended by Commissioner Nafiz Tarik, Executive Director Sheikh Mahbubur Rahman and other senior officials. DSE Chairman Mominul Islam, Managing Director Nuzhat Anwar and shareholder director 

Minhaz Mannan were also present.

Both sides agreed that effective surveillance should help identify and address market manipulation without creating unnecessary uncertainty among investors.