Stakeholders seek massive reforms in capital market
Aiming at strengthening the market and boosting investor confidence the representatives of the firms and institutes shared their opinions and proposals regarding comprehensive reforms in the capital market
Intending to create a roadmap for capital market development, key stakeholders have proposed several changes, including amendments to IPO rules, improving the quality of IPOs, enhancing digital transformation and fintech solutions, introducing new products, accessing KYC information from CDBL, facilitating the buyback of shares, imposing exemplary punishments, and strictly enforcing the securities laws of the capital market.
They made the proposals for the Bangladesh Securities and Exchange Commission (BSEC) during a discussion meeting held between BSEC and senior executives from Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), Central Depository Bangladesh Limited (CDBL), Central Counterparty Bangladesh Limited (CCBL), Bangladesh Institute of Capital Market (BICM), Bangladesh Academy for Securities Markets (BASM), and the Capital Market Stabilization Fund (CMSF) yesterday.
The meeting was held at the BSEC headquarters in Dhaka's Agargaon and was presided over by BSEC Chairman Khondkar Rashed Maksud. Also present were BSEC Commissioner Mu Mohsin Chowdhury, Md Ali Akbar and Farzana Lalarukh.
Aiming at strengthening the market and boosting investor confidence the representatives of the firms and institutes shared their opinions and proposals regarding comprehensive reforms in the capital market.
Keep updated, follow The Business Standard's Google news channel
Topics of discussion included regulatory framework reforms, ensuring regulatory compliance and institutional governance, technological development and modernisation, effective measures for the development of market products, expansion of investment education, increasing investor awareness, strengthening educational and training programs to enhance the capabilities of professionals working in the market, diversification of the market, the introduction of new products, and most importantly, building investor confidence for constructive and sustainable reforms in the capital market.
All participants agreed on the necessity for BSEC and related institutions to work together as partners for the development of the country's capital market.
AGM Sattique Ahmed Shah, acting managing director of the Dhaka Stock Exchange (DSE), proposed several key issues that are crucial for advancing the capital market.
However, he emphasised that these proposals are not final and require further discussion to ensure proper implementation for the overall improvement of the capital market.
Saifur Rahman Mazumdar, managing director of the Chittagong Stock Exchange (CSE), proposed several specific issues aimed at improving the capital market. He emphasised that some of these areas need reform to advance the market in a sustainable, long-term manner.
DSE proposals
The Dhaka bourse proposed reforms in three key segments: general proposals, technology-related proposals, and regulatory compliance and governance.
The DSE proposed bringing more quality IPOs from renowned local conglomerates and making mandatory listing provisions of multinational companies (MNCs) to the country's capital market.
The other proposal included enhancing cooperation with stakeholders between regulators and industry stakeholders, public-private partnerships, international cooperation.
Coordination among the key regulators with the Bangladesh Bank, the National Board of Revenue and the Ministry of Finance to ensure national policy support came as another proposal.
The DSE emphasised digital transformation and fintech solutions, automation of compliance and risk management, automated trading platforms and efficiency, and enhanced market data services.
On the other hand, the Chattogram bourse proposed several reforms, including streamlining and accelerating the existing IPO process, separating the institutional market from the retail market, and introducing various regulatory amendments to improve the capital market.
More meeting
The BSEC will hold a similar meeting today (1 October) with various industry associations, including the DSE Brokers Association, Bangladesh Merchant Bankers Association, Association of Asset Management Companies and Mutual Funds, Association of Credit Rating Agencies of Bangladesh, Bangladesh Association of Publicly Listed Companies, Financial Reporting Council, and the Institute of Chartered Accountants of Bangladesh (ICAB), to discuss comprehensive reforms for the capital market.
