Financial measures proposed in the budget are not enough for soundness of the capital market, it needs good governance, the Center for Policy Dialogue (CPD) said in a post-budget briefing on Friday.
“The budget has encouraged the listed companies to give more cash dividends instead of bonus shares. It’s a good step that can help the capital market but such financial measures alone cannot solve the problems in the market,” CPD Distinguished Fellow Dr Debapriya Bhattacharya said.
“Capital market also needs improved governance just as the banking sector,” he added.
The stock market in Bangladesh has been suffering from a serious liquidity crisis, which wiped out almost the entire market gains since the election in December.
The Dhaka Stock Exchange gained 615 points since the middle of December but then lost 790 points in three months.
As the market went on a nosedive, experts alleged malpractices on the market.