Refrain from spreading prediction, forecasting stock price on social media: SEC

The Bangladesh Securities and Exchange Commission or SEC has ordered all directly or indirectly involved with the share market not to spread prediction, price forecasting or undisclosed information on social any other media.

The SEC issued the order on Wednesday to protect the interests of investors or securities markets.

It warned against using names or any derivatives of the commission, Dhaka Stock Exchange or DSE and Chattogram Stock Exchange or CSE with social media profiles or pages of individuals or groups.

The commission also prohibited use of the SEC, DSE and CSE’s logos with social media profiles or pages.

“Contravention of this directive shall attract appropriate penal provisions of the securities laws and the Digital Security Act, 2018,” the commission warned.

Complaints over the spread of rumours about stocks on social media, especially Facebook, have been there for quite some time. Different Facebook pages or groups also regularly forecast share prices.

Such rumours on risky shares with weak base prices are harmful to the market and investment in such shares can return losses, experts say.