Country’s stock market suffers from two major problems: Salman F Rahman

Bangladesh's capital market suffers from two major problems – infrastructure and trading trends of institutional and general investors, says Salman F Rahman, private industry and investment adviser to Prime Minister Sheikh Hasina.

He made the observation at an event on Thursday as Beximco Green-Sukuk Al Istisna – country's first-ever asset-backed security by a private sector entity – made its trading debut on the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). 

The Beximco Group vice chairman attended the programme, held at the DSE Tower in Dhaka, as chief guest.

In his address, he said that two problems of the country's capital market are discussed everywhere.

"One of the problems is infrastructure related and the other is trading trends of institutional and general investors in a mature market. 

"Our market is only equity-based. This is a big weakness, and taking this in view, the securities regulator is working for the development of the debt market," he added.

Salam F Rahman expressed hope on the future financing for the government's large projects through bonds.

Stating that the country's brokerage houses are treated as brokers due to lack of corporate practices, he said, "brokerage houses will have to adopt corporate practices in a bid to become institutes and this will help restore the confidence of investors."