The Dhaka Stock Exchange (DSE) is considering setting up beneficiary owner (BO) accounts for those who have mobile financial services (MFS) accounts without conventional bank accounts so they can invest in the stock exchange.
This is being done to increase both new investments and investors in the country's capital market.
Even those who have no regular bank account needed to open a stock market BO account, mandatory for share trading, would be able to invest in the stock market, said Tarique Amin Bhuiyan, managing director of DSE.
"We are trying to increase both local and foreign investments in the market. Many farmers now have investable funds but no financial literacy. The capital market is now at the city level, but we will also go to the village level," he added.
Many people have funds but cannot invest in the stock market because they do not have a bank account, he also said.
He made the remarks while inaugurating a new brokerage house in the capital on Monday.
Under a demutualization program, the DSE recently issued trading right entitlement certificates (TRECs) to 58 new entities and 3i Securities is the first of them to launch share trading.
Bhuiyan said it was very important to link MFS accounts with BO accounts.
Many do not open a bank account but everyone has a mobile financial services account through which stock transactions are possible, Bhuiyan further said.
He said market capitalization is 20% of the country's gross domestic product, though the capital market is not growing at the rate at which the GDP is growing. The size of the economy is $409 billion while market capitalization is close to $70 billion.