Entrepreneurs of the small and medium enterprises (SME) of the country can now raise Tk5 crore to Tk30 crore capital from the stock market.
SME Foundation and Dhaka Stock Exchange (DSE) have signed a Memorandum of Understanding (MoU) in this regard under Bangladesh Securities and Exchange Commission (Qualified Investor Offer by Small Capital Companies) Rules, 2018 to create opportunities for small entrepreneurs to raise capital from the stock market.
Dr Md Mafizur Rahman, managing director of the SME Foundation, and Tarique Amin Bhuiyan, managing director of Dhaka Stock Exchange, signed the MoU in presence of Md Masudur Rahman, chairperson of the SME Foundation and Md Eunusur Rahman, chairman of the DSE.
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Md Mafizur Rahman said that the opportunity for SME entrepreneurs to raise capital from the stock market will undoubtedly usher in a new era for the SME sector of the country.
“Signing an MoU is not enough. It must be executed successfully. I express my thanks to the DSE authorities for taking this timely initiative,” he added.
Tarique Amin Bhuiyan said: “Although there is an opportunity to raise capital from Tk5 crore to Tk30 crore at present from the stock market, the amount will increase further if the definition of SME changes.”
Foundation Chairperson Md Masudur Rahman said that the contribution of the SME sector in the Indian economy is 60%. In China and Japan, it is about 70%. But in Bangladesh, it is only 25%.
The SME Foundation is working to build the capacity of entrepreneurs to increase their contribution.
“One of the biggest problems the country's SME entrepreneurs face is the capital crisis. Although Tk180,000 crore is given in this sector through the banking channel of the country, the actual demand is at least three times higher,” he added.
In order to solve this crisis, BSEC has made rules to give SME entrepreneurs the opportunity to raise capital from the stock market. He urged the entrepreneurs to take this opportunity.
DSE Chairman Md Eunusur Rahman said: “Even though the government announced a two-phase package for small and medium entrepreneurs, most of the entrepreneurs did not get its benefits due to various complications. In this case, being able to raise capital from the stock market is a great opportunity for them.”
“Due to the stock market being the most reliable place to raise long-term capital, the SME entrepreneurs should raise capital from the stock market,” he added.
According to the 3-year MoU, the SME Foundation and the Dhaka Stock Exchange will jointly undertake innovative programmes for the development of the country's SME sector by conducting joint research and exchange experiences in the development of the SME sector.
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They will also demonstrate joint campaigns to inform SME entrepreneurs about raising capital from the stock market and will organize joint venture meetings, seminars, training workshops for the purpose of assisting SME entrepreneurs in raising capital from the stock market.
Moreover, the SME Foundation will provide a list of interested and eligible entrepreneurs to raise capital from the stock market and exchange mutual knowledge and experience in the development of the SME sector.
There will also be an exchange of mutual knowledge and experience for the green economy or environmentally friendly industrialization. The SME Foundation will provide ideas to SME entrepreneurs on product marketing and both sides will exchange information on technology development.
Earlier, the Dhaka Stock Exchange had launched the “DSE SME” platform on April 30, 2019, to create opportunities for small entrepreneurs to raise capital from the stock market, as per the rules.
