PM suggests 7-point measures for stock market development

DHAKA, Sept 12, 2018 (BSS) – Prime Minister Sheikh Hasina today suggested
undertaking seven-point measures for stock market development, asking all
concerned including the BSEC to play a due role in protecting the interest of
the investors.

“I call upon all concerned including the Bangladesh Securities and Exchange
Commission (BSEC) to play a due role in protecting the interest of the
investors as well as enhancing the contributions of the capital market to
accelerating the economy and implementing the mega projects,” she said.

The prime minister was addressing as the chief guest the silver jubilee
celebration function of BSEC at Bangabandhu International Conference Centre
here.

The steps that the prime minister suggested are: the development of bond
market as a source of the long-term funding, expanding and diversifying the
chosen baskets of the investors by launching new products, informing all
concerned about the products, their operating process and strategy before
their introduction.

The other measures are – expansion of investment education at all levels by
strengthening the BSEC Training Academy Programme, arrangements of seminars,
workshops, and discussions on the role and importance of the stock market in
socioeconomic development and inter-relations between the capital market and
other sectors, introduction of small cap board at fastest possible time to
complete share transaction of the established as well as small and medium
capital-based companies for funding venture capital.

The prime minister urged all concerned to properly implement all programmes
including maintaining transparency and accountability in all spheres and
establishing rule of law alongside ensuring all kinds of infrastructural
facilities.

“If these programmes are implemented, I’m sure that the country’s economic
growth and the trend of advancement will be further geared up through private
sector investment,” she said.

The premier assured that the government will also continue allout support
for stock market development in future.

“Our government will keep up allout support for stock market development in
future … the capital market will be a dependable source of long-term
funding in building a developed Bangladesh,” she added.

Finance Minister Abul Maal Abdul Muhith was present at the function as the
special guest, while Financial Institution Division Secretary under the
Finance Ministry Md Asadul Islam and BSEC Chairman Dr M Khairul Hossain also
spoke.

Ministers, parliament members, leaders of the business bodies, senior
officials of the financial institutions and securities companies and senior
government officials were present.

An audio-video presentation on the role of the BSEC in Bangladesh’s economic
uplift was made at the function.

Advising the investors to invest in stock market cautiously, Sheikh Hasina
said the government does not want anybody be affected by making investment in
the capital market.

“I would like to tell the investors to invest in the companies by collecting
their information and knowing about them well and in detail … You’ve to
know where you are going to make investment and what is its future and you’ll
have to remain careful about this,” she said.

“Don’t fall to excessive greed … not being influenced by anybody, you’ll
have to take step in this regard. Then nobody will be affected,” she added.

For flourishing the stock market, the premier said, the BSEC will have to
continue and make more dynamic the trend that they are maintaining in both
roles — regulator and cooperator.

The prime minister said the government has taken various steps to build a
stable, transparent and accountable stock market.

She said good governance of the stock market has been ensured with infusing
dynamism into it through demutualisation, while steps have been taken to
ensure good governance of the listed companies.

Sheikh Hasina said proper regulatory system has been enforced to check
manipulation and irregularities in share transactions and the successful
implementation process of the incentive package framed for the investors is
underway.

“We’ve launched the work of the special tribunals for speedy disposing of the
stock market-related cases and formed the Financial Reporting Council to
examine the transparency and trustworthiness of the financial report,” she
said.

The prime minister said a scope for making investment in the venture capital
and private equity through the BSEC (alternative investment) Rules-2015 has
been created. “As a result, different small and medium industries including
ICT are attracting local and foreign
investment,” she said.

Sheikh Hasina said due to strides of the government, the BSEC got the honour
of “A” category regulatory body. “Foreign investment has been raised
significantly, while the interest of India, China and other countries in our
market has been increased,” she said.

The premier said the Securities and Exchange Board of India and Bangladesh
Securities and Exchange Commission have signed a memorandum of understanding
(MoU).

She noted that Chinese consortium has already been included in Dhaka Stock
Exchange as a ‘strategic investor’.

With this inclusion, she said, the investors, stakeholders and all concerned
will be benefitted along with increasing depth of the capital market.

The prime minister said Bangladesh’s stock market is being considered as
fast growing and potential sector and “for this I thank all concerned
including the regulatory body, stock exchange and the investors.”

Sheikh Hasina said her government has already constructed BSEC’s own
building and make designation/status and salary-allowances as well other
facilities of the officials of the commission equivalent to Bangladesh Bank.

“We’re taking necessary measures for increasing the manpower of the
commission,” she said.

Highlighting her government’s tremendous success in different sectors,
Sheikh Hasina said the government has been working relentlessly to change the
lot of the people following the ideology of the Father of the Nation.

The premier reiterated her determination to build a middle income country by
2021 and a developed and prosperous Bangladesh by 2041.

“We’ve also framed the Delta Plan-2100 considering the future of the next
generations,” she said.

In his speech, the finance minister said the government now could feel
satisfaction as the country’s capital market is truly well-established. “Its
advancement couldn’t be thwarted in any way,” he said.

Muhith said Bangladesh’s capital market got recognition and its position has
been enhanced in the world.

“We will continue the existing commission for the next two years and we hope
when its tenure will expire, a true security market will be established in
the country and we could feel proud of it,” he said.