Brokerage industry leaders emphasise key measures for a thriving capital market

Representatives from the brokerage and merchant banking sectors reiterated their recommendations to foster a vibrant capital market during a meeting with the Dhaka Stock Exchange (DSE) on Sunday (18 June). 

The meeting, chaired by DSE Acting Managing Director M Shaifur Rahman Mazumdar, highlighted concerns regarding the proposed income tax act's impact on new investor encouragement, hindrances posed by floor prices on trading, and the need for clear communication between authorities and the media to avoid misleading reports.

The industry leaders proposed several prescriptions aimed at fostering a more liquid capital market. 

They called for a reduction in the trade settlement cycle from two days to one, the introduction of market makers for individual stocks, expedited rollout of derivative products, and an expansion of market quality. 

Additionally, they advocated for easier BO account opening procedures and the inclusion of smaller trades in the block market, with a minimum threshold as low as Tk1 lakh, down from Tk5 lakh.

The representatives emphasized that the expansion and facilitation of the brokerage industry would contribute to the overall growth of the capital market. 

They stressed the importance of aligning the market with the economy to ensure its advancement and urged authorities to establish stronger links between the two.