The stock market was ruined over the last 14 years during Prof M Khairul Hossain and Prof Shibli Rubayat-ul Islam's tenures at the helm of the securities regulator as they engaged in unprofessional and illegal activities, according to the DSE Brokers Association of Bangladesh (DBA).

DBA President Saiful Islam made the allegations against the former chairmen of the Bangladesh Securities and Exchange Commission (BSEC) during a press conference at the Dhaka Club yesterday.

Islam said the two professors had been running the BSEC since 2011, but the market had not seen any development during their 14 years at the helm. Instead, they had brought people's confidence to its nadir.

He added that they had not only failed to ensure transparency, good governance and accountability, but also could not curb insider trading or other forms of stock manipulation. They were also unsuccessful in bringing good companies to the market.

"Moreover, they were involved in irregularities," Islam said.

Most companies listed over the last 14 years are poor performers and were approved despite the Dhaka Stock Exchange's (DSE) objection.

He alleged that the BSEC threatened the DSE, saying it would use the powers afforded to it under Section 2CC of The Securities and Exchange Ordinance to bind them.

Section 2CC gives the securities regulator huge power, stating that the BSEC's orders will supersede any other order.

"Irregularities and corruption in the name of approval of IPOs were concerning under the Khairul and Shibli commissions," Islam said.

Along the same vein, several companies listed on the SME Board of the DSE have been non-functional for more than 20 years. The BSEC did these without following rules and regulations, Islam clarified.

"For what reason had the BSEC done it?"

He also said the BSEC created a speculative bubble and ultimately killed the market by imposing the floor price, which led to almost no buying or selling for at least a year.

Islam also accused BSEC officials of being directly involved in market manipulation, saying it had ultimately ruined the market and eroded people's confidence.

The DBA recommended reforming the BSEC and the DSE by removing corrupt officials, directors and commissioners who were appointed due to their political affiliations.

Islam added that the BSEC, without notice or consultation, raised the fees levied on stock brokerage firms several times despite the market displaying a bearish trend. Such changes should be revisited.

An investigation committee should be formed to unearth the true extent of irregularities and corruption during the past 14 years and corrupt individuals should be punished.

A separate investigation is necessary to find out how much foreign exchange was wasted and laundered in the name of holding roadshows abroad.

The Chittagong Stock Exchange, Central Depository Bangladesh, and Central Counterparty Bangladesh also need to be reformed as board members were employed due to their political leaning, the DBA said.

All the rules and orders of the last two commissions should be revisited. To enhance accountability and transparency, IPO rules should be revisited and stock exchanges should be allowed to decide which companies will be enlisted.

The DSE and CSE should be empowered to investigate whether listed companies are functional.

If anyone is found to be involved in market manipulation, they must be punished financially and have a case filed against them, the DBA said.

DBA's Senior Vice-President Md Saifuddin, Vice-President Umar Haider Khan, and several directors were also present at the event.

The Daily Star called both Khairul Hossain and Shibli Rubayat for their comment but they did not receive the calls.