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Muhith: Foundations for fully-fledged stock market laid

  • Published at 01:43 pm October 7th, 2018
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Finance minister AMA Muhith addresses the inaugural session of 'World Investor Week-2018' at Krishibid Institute, Bangladesh on October 07, 2018 Mehedi Hasan/Dhaka Tribune

The minister says several reforms have been made to the stock market in the aftermath of two crashes

Finance Minister AMA Muhith said the stock market has not yet completely flourished in Bangladesh, though its foundation has been laid.

“A full-fledged stock market will soon be established in the economy,” he remarked yesterday at the inaugural session of World Investors Week 2018, at Krishibid Institute Bangladesh (KIB) in Farmgate, Dhaka.

The Bangladesh Securities and Exchange Commission (BSEC) has organized the event in a bid to raise awareness among stock investors.The week is being observed in accordance with a declaration of the International Organization of Securities Commissions (IOSCO)—a global platform for securities regulatory bodies.

Muhith said several reforms have been made to the country’s stock market following two major crashes in the market.He lauded the role of BSEC in regulating the capital market. “This commission has been working for eight years and they have shown their capabilities.”

The Finance Minister said, “The next five years are very important for Bangladesh to grow as a sustainable economy and become a prosperous nation.”

He also said: “If Sheikh Hasina's government governs the country for another five years, Bangladesh will face no major impediments in becoming a developed nation in the next 10-15 years”.

Muhith said the investment in the economy is really very low, as the investment-GDP ratio is only 30%. Of the total, 22% comes from the private sector, and the rest from the government.”

He said the country’s economy has grown considerably in the last 10 years as enhanced investment has spurred growth.

BSEC Chairman M Khairul Hossain said: “The book building system will be suspended or stopped if needed for the Capital market. He requested eligible investors to play their proper roles in the book building system to set the cut-off price.”

He also said: “The BSEC is working relentlessly to protect the interests of investors.”

To mark the occasion, BSEC has chalked out a seven-day program of cultural events, discussions, reunions, and seminars.

The Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) also arranged various other programs in Dhaka and Chittagong to mark the week.

Secretary of Financial Institutions Division, Ministry of Finance, Md. Ashadul Islam, was  present at the event.

After the inaugural session, a  seminar on the “Importance of financial literacy and investor protest” was held at the venue. Speakers at the seminar stressed product diversification and good company listings.

The seminar was moderated by BSEC Executive Director Farhad Ahmed and BSEC Executive Director Md. Mahbubul Alam made the key note presentation on the “Importance of financial literacy and investor protest.”

Panelists at the discussion included CSE managing director M Shaifur Rahman Mazumdar, Central Depository Bangladesh Ltd (CDBL) managing director Shuvra Kanti Choudhury, and Bangladesh Merchant Bankers’ Association (BMBA) President, Mohammed Nasir Uddin Chowdhury.