The Bangladesh Securities and Exchange Commission (BSEC) chairman Dr M Khairul Hossain requested merchant bankers to not give false information to Initial Public Offering (IPO) prospectus in order to raise funds.
He was speaking during the inauguration ceremony of Bangladesh Merchant Bankers Association (BMBA) held on Saturday at Hotel 71 in Dhaka. Khairul Hossain, chairman of the BSEC, was present as the chief guest at the event. The program was presided over by Mohammed Nasir Uddin Chowdhury, president of BMBA.
BSEC chairman said: “If the position of the merchant bankers is firm and honest, then the market will remain stable. Merchant bankers have a special duty towards the market.
“If merchant bankers submit IPO prospectus to raise funds by giving false information, then BSEC will face an image crisis and investors might stand to lose capital” he added.
He said bringing new products in the stock markets is the key to retaining existing investors and for attracting new investors. He urged the stakeholders to concentrate on strengthening bond markets and introducing derivatives.
“We also have to inform investors about the new products through training so they can spot misinformation,” said the BSEC chief.
BSEC chairman Khairul Hossain unveiled the BMBA office, logo and website. He hoped that under the present leadership, the merchant bankers will give increasing effort for the wellbeing of the market.
“The merchant bankers should bring companies that have good ethics for the sake of their own image,” he added. He urged the large companies to raise funds through the capital market to avoid taking bank loans.
Khairul Hossain said the country’s capital market can be a source of long-term financing for infrastructure and industrialization. “There is a correlation between the development of the economy and the capital market,” he said.
Mohammed Nasir Uddin Chowdhury, president of BMBA, expressed gratitude to the chairman of BSEC for attending the ceremony as chief guest.
He said: “Our heartiest congratulation to you for your appointment as the chairman of BSEC for the third term. We are confident that your rich track record will be further enhanced. We take this opportunity to assure you about our utmost cooperation.”
It is mentionable that huge reforms including demutualization of the stock exchange have been done after 2010 in the capital market by BSEC.
“Demutualization has been done very smoothly within a short time and with coordinated effort from all stakeholders. Bangladesh’s capital market now stands on a strong platform and requires positive policy support,” Nasir Uddin Chowdhury said.