Shaifur is a member of both the Institute of Chartered Accountants of Bangladesh (ICAB) and the Institute of Cost and Management Accountants of Bangladesh (ICMAB). He has a Bachelor of Commerce with Honours and aMaster of Commerce degree from Chittagong University. He completedachartered accountancy course under RahmanHuq Chartered Accountants in Chittagong.
How do you evaluate the current state of Bangladesh's capital market?
After successful completion of the 11th parliamentary election, I think the market will stabilize, and there is a huge scope for qualitative expansion of the capital market. I expect the market to play its due role in the country's economy.
How far have you progressed in determining a strategic partner for CSE?
We have not yet finalized the inclusion of a strategic partner as per the regulatory requirement. National Stock Exchange (NSE) of India has shown interest and their envoy visited us, and had separate meetings with the regulators and the Finance Ministry.
They made some suggestions and propositions related to policy issues, to which the authoritiesconcerned have not responded yet. We are also working closely with some international investment management companies to assist us in this respect.
What benefits are we enjoying four years after demutualization of the stock exchanges?
Demutualization of stock exchanges does not only mean regulatory restructuring. Through the demutualization process, ownership and management of the exchanges have been separated. However,financial feasibility and viability of the exchanges have not yet been focused on. We need diversification in terms of products, features, and competitive advantages.
How much progress has the Central Counter Party (CCP) made?
All the initial formalities for formation ofa CCP company,as the Central Counter Party Bangladesh Ltd (CCBL), have been completed. We will receive the certification of incorporation from the Registrar of Joint Stock Companies and Firms shortly.In the meantime, we are selecting the system provider for CCBL.
What are the prospects of foreign investment, and what changes do you expect in the market if the consortium of Shenzhen Stock Exchange (SZSE) and Shanghai Stock Exchange (SSE) get involved in our capital market?
Inclusion of SZSE and SSE of China as strategic partners of the DSE(Dhaka Stock Exchange) may enhance the brand imageof the capital market, thereby,helping to attract foreign investments to Bangladesh's capital market.
Do you think this will be enough to increase foreign investment in our stock market?
During the tenure of the present government, we expect political stability and sound financial structure, which brings about a huge scope of foreign participation in the market. But,some reformation will be required at the policy level to ensure effective role of the capital market in the growing economy.
The number ofhigh-quality companies in our capital market is very low.Do you think better companies will get listed after the Chinese consortium joins us?
One of the crucial weaknesses of our capital market is the absence of sufficient high-quality issuers. It can be resolved through some minor policy re-arrangements and commitments. Necessary steps have to be taken in this regard now.
What initiative can be taken to increase the capital market's contribution to our GDP?
In order to increase market capitalization to GDP ratio, some urgent policy issues that need to be addressed are: formulating policies to ensure listing of high-quality companies that are, at present, beyond the purview of the capital market or just unwilling to be listed; formulating policies for listing of state-owned and foreign companies; and establishing a corporate bond market through regulatory co-ordination and reformation.
Framing supportive policies to allow the capital market raise long term financing can also assist in bringing stability to the banking sector.
Why do you think multinational companies (MNCs) and state-owned companies are not getting listed?
It only requires policy support and commitment from the government for MNCs and state-owned firms to get listed.
What can we do to strengthen the capital market?
Although our market has a huge scope of expansion, government policy and regulatory co-ordination are necessary for building a vibrant capital market where investors can invest transparently, and entrepreneurs can raise funds efficiently for business expansion.