The stock market is witnessing a downtrend during the recent days due to Securities and Exchange Commission's (SEC) intervention in the market, sources said

The DSE General Index went down by 49.64 points, or 2.15 percent, ending the day at 2254.56 points, while the CSE Selective Categories Index fell down by 79.75 points, or 2.1 percent, finishing the day at 3708.78 points.

Besides, the DSE All Share Price Index dropped by 27.76 points, 1.46 percent, to close at 1870.11 points, while the CSE All Share Price Index dipped by 74.75 points, or 1.31 percent, to end at 5612.09 points.

Market Sources said the SEC is informally instructing the merchant banking wings of banking and non-banking financial institutions not to rush in buying shares.

The SEC, however, denied the allegation.

Denying any such move, an executive director of the SEC said the commission did not make such direction to the merchant banks or institutional investors.

Recently, the SEC formed an inquiry committee following an allegation that the merchant banks are giving excess margin loans to the investors.

The market regulator also asked the merchant banks to adjust their margin loans, which forced the latter to go into a selling spree.

Of the issues traded on the Dhaka Stock Exchange (DSE), 62 advanced and 130 declined with 16 unchanged, while of the issues traded on the Chittagong Stock Exchange (CSE), 20 gained and 72 declined with six unchanged.