In order to bring stability to the country’s stock market and attain the goal of sustainable economic growth, authorities concerned must come up with measures to bring good companies in the share markets.
Stock market analysts, regulator and economists came up with the observation while addressing a seminar titled “Role of Share Market: Finance Long Term Investments” held in the capital on Tuesday.
Dhaka Stock Exchange Brokers’ Association (DBA) and online new portal BusinessHour24.com jointly organized the seminar.
Speaking at the seminar as the lead speaker, former finance adviser to a caretaker government AB Mirza Azizul Islam said good companies do not want to be listed in the stock market, but they should come forward.
“Therefore, the obstacles which prevent them from entering must be addressed. In this case, a good company has to pay the premium according to their respective eligibilities.”
He added due to discrepancies in the book building system, many companies do not get the right price for bidding, which is a tragic. “Bangladesh Securities and Exchanges Commission (BSEC) needs to address this issue.”
BSEC Chairman M Khairul Hossain, chief guest of the occasion, said non-complying brokers, dealers, merchant banks and asset management companies will soon be excluded from the list of institutional investors.
“Even their registration could be cancelled,” he also said, adding some amendments to the definition of institutional investors are being planned to ensure the transparency of the book building system.
The BSEC chairman said BSEC is working relentlessly to protect the interests of investors.
Dhaka Stock Exchange Brokers’ Association (DBA) President Shakil Rizvi said, “All proper incentives and facilities will be provided to companies, which can then form a healthy stock market. But the incentives should be formulated after much scrutiny.”
Faruq Ahmed Siddiqi. former BSEC chairman said, “There are many benefits from investing money in the stock market, as banks do not provide long term loans. After lifting the money from the stock, advantage for entrepreneurs is that there is no need to repay it back to the stock market.”
Journalist Raju Ahmed, keynote speaker at the event, said to make efforts to establish the stock market as a main driver of the national economy. For this reason, if the IPO process is done easily and in short time, then companies will be encouraged to be listed in the stock market.
Among others, Capital market journalist’ forum (CMJF) president Hasan Imam Rubel, former president of Bangladesh Merchant Bankers' Association Md Sayedur Rahman and adviser of BusinessHour24.com Md Akter Hossain Sannamat were also present at the seminar.
