The capital market would become vibrant and dynamic in two years with various reform programmes, said Bangladesh Securities and Exchange Commission chairman Shibli Rubayat-Ul-Islam on Saturday.

He made the comments at an online seminar titled ‘Capital Market and Covid-19: Charting Impact and Path to Recovery’, organised by the Chittagong Stock Exchange.

Shibli said that the commission emphasised prevention of various anomalies to bring good governance practices in the market that would help to improve investors’ confidence.

He said, ‘We hope that the market would be stabilised in the next two years.’

The current commission took several initiatives, including product diversification, market digitalisation and prevention of rules complications.

‘We are working to ease the IPO process, digitalise trading and official activities, and to diversify the market with good products,’ he said.

‘We also know that the floor price is a barrier for the capital market and we are in discussion with government high officials on how and when the restriction can be lifted without harming the investors’ interests,’ he added.

Chittagong Stock Exchange chairman Asif Ibrahim said that lack of diversified product, scarce listing of good companies, inadequate corporate governance practices and lack of investors’ understanding limited the potentials of the capital market.

He also said that the Financial Reporting Council must be fully operational to ensure transparent and accurate financial information in audited reports of listed companies.

He also stressed simplification of the IPO/post listing process and strengthening of the role of merchant banks and asset management companies to ensure transparency in the IPO process.

Asif urged the government to impose policy level impetus and constraints to bring proficient multinational, government and private companies with sound governance to the capital market.

Bangladesh Association of Publicly Listed Companies president Azam J Chowdhury said that the wrongdoers must be punished without wasting time.

He also said that no banks had been affected for investing in the capital market but they rather suffered for their huge non-performing loans.

He urged the Bangladesh Bank to withdraw the limit on investment exposure of banks in the stock market.

He also requested the BSEC to address the contradictory rules followed by the BSEC, the BB and the Insurance Development and Regulatory Authority Bangladesh for ease of doing business.

Metropolitan Chamber of Commerce and Industry president Nihad Kabir said that the foreign investors complained that they were frustrated to see only seven to eight good companies on the country’s stock market.

Lack of governance, transparency and investment friendly policy and shortage of liquidity in the market have also been key problems that discourage the foreigners, she said.

The good companies also remain unwilling to come to the market as they do not get justified valuation of the companies’ shares, she said.

Business Initiative Leading Development chairperson Abul Kasem Khan said that the audit of financial statements must be monitored closely to ensure governance in the corporates.

There should be zero tolerance regarding fraudulence with the general people, he said.

BRAC Bank chief executive officer and managing director Selim RF Hussain said that any kind of regulatory intervention in the index was damaging.

We must quickly move to digitalisation of trading and settlement activities, he said.