Not a day trader, be long-term investor to get good returns: BSEC chairman

Bangladesh Securities and Exchange Commission (BSEC) Chairman Professor Shibli Rubayat Ul Islam has urged stock market investors to invest for the long term to get good returns from the capital market.

"If you [investors] want to be a day trader [who executes buy-sell of shares within a short time for securing quick gain] in the market, you cannot expect good returns on investments," he said at a programme titled "Investors Resilience: Initiatives by Regulator" on Saturday.

The Capital Market Stabilisation Fund (CMSF) organised the event in its office at Motijheel in the capital as a part of celebrating World Investors Week, 2023.

"The BSEC is trying to provide maximum protection for investors. We want investors protected so that they do not lose their money in the market," Shibli Rubayat said, adding that the stock market is the best place for long-term investment. 

"We are trying to bring some new and innovative products to the capital market. We are not ready to bring crypto assets at this moment but we are focusing on green products," he said.

"Any green factory and LEED-certified factories in the ready-made garments (RMG) sector will get preference in getting approval for initial public offering (IPO) or bonds," the BSEC chairman added.

Addressing the event, BSEC Commissioner Shaikh Shamsuddin Ahmed said there are many opportunities to work on sustainable finance and the government also has a lot of thoughts on it.

"Technology adaptation is very important to make investors resilient. If we cannot use technology, we cannot be resilient. For that, the brokerage firms of the capital market have to adapt the technology, so that the safety of the investors can be protected," he said.

Referring to the CMSF, Shamsuddin said, "Focus should not be only on fund collection for CMSF but also on the utilisation of funds. This fund should be used to play a role in market stabilisation. Besides, it should also be ensured that returns are given to the shareholders from the income of the CMSF fund."

AKM Nurul Fazle Bulbul, a member of the board of governance of CMSF and vice-president of Central Depository Bangladesh Limited, Asif Ibrahim, chairman of Chittagong Stock Exchange also spoke at the event presided by CMSF Chairman Md Nojibur Rahman.

Dhaka University Professor Dr Mohammad Tareq delivered the keynote at the event.