Govt to resolve all issues to develop capital market: Mustafa Kamal

Sunbd Desk || Published: 2020-10-04 03:04:30 || Updated: 2020-10-04 03:04:30

Finance minister AHM Mustafa Kamal on Saturday said that the government would remove all kinds of problems to develop the country’s capital market.

Mustafa Kamal made the comment at a webinar on ‘The Role of Capital Market for Bangladesh’s Development’.

The Bangladesh Securities and Exchange Commission organised the event on the occasion of the World Investor Week-2020 that began in the capital on the day.

The finance minister inaugurated the weeklong event being organised by the BSEC.

Mustafa Kamal said that the country’s economy was now much stronger than before.

To keep the growth of the economy, the capital market will be developed further, he said.

Salman F Rahman, private sector industry and investment adviser to the prime minister, said that there were some structural problems in the country’s stock market.

Mutual funds have never been taken off properly for the structural problems that must be addressed, he said.

Salman said that the participation of institutional investors were very poor that should be increased by providing incentives, if needed.

Transfer fees for listed bonds should be waived to build up the bond market, he suggested.

Finance ministry financial institution division senior secretary Asadul Islam said that the government was working to develop the capital market so that it could play its due role in the country’s economic growth.

The current commission has taken some steps recently that build up confidence of investors, he said.

BSEC chairman Shibli Rubayat Ul Islam said that the regulator was trying to increase transparency in the audit reports of the companies.

‘We have punished a number of auditors after finding inconsistencies in the com panies’ financial reports,’ he said.

The regulator also moved to digitalise the capital market completely, Shibli said.

To prevent contradiction among different regulators, the commission is working to increase coordination among the regulators, he said.

Metropolitan Chamber of Commerce and Industry president Nihad Kabir said that good companies were reluctant to be listed on the country’s capital market.

The securities regulator can assess the reluctance of the companies to prevent the difficulties, she said.

Nihad said that foreign investors were doubtful about the disclosures provided by the listed companies and the issue should be addressed.

Bangladesh Association of Publicly Listed Companies president Azam J Chowdhury said that the regulators should sit together to prevent contradictions.

For the financing of large projects of the government, the capita market can be a source of long-term financing, he said.

BSEC commissioner Mizanur Rahman said that the regulator had taken some steps to develop the market.

The commission is trying to diversify the capital market to enhance the depth of the market, he said.

Mizanur said that the BSEC would also reform the mutual fund rules to bring transparency in the sector.

your script