Finance Minister AHM Mustafa Kamal has said a strong stock market is needed to keep the country’s economy afloat. And I want to make this market people friendly. We are ready to give everything in the interest of improving the capital market.
He was speaking as the chief guest at a seminar organized by the Dhaka Stock Exchange (DSE) on Tuesday.
The theme of the seminar was ‘Golden Jubilee of Independence; Possibility of capital market in the light of Bangabandhu’s dream. DSE Chairman Yunusur Rahman presided over the function while Bangladesh Securities and Exchange Commission (BSEC) Chairman Prof Shibli Rubaiyat-ul-Islam and Senior Secretary of the Financial Institutions Department of the Finance Ministry Md. Asadul Islam.
The finance minister said people lack confidence in the capital market. But I don’t know why it is lacking. Many call and talk about the lack of trust in the capital market.
He said last year’s budget provided more than what was sought for the capital market. We have given black money the opportunity to invest, encouraged cash dividends. At this time, if there is any suggestion that will benefit everyone by focusing on the upcoming budget, he requested to give it. However, the finance minister also said not to give any advice that you can’t keep.
He added that a company can give bonus shares for 1 year or 2 years. Which may be for business expansion. There can be no other reason behind this. In addition, many companies increase their reserves by six-nine of that amount. Accordingly, the capital market is currently very strong. And this market has to be developed as people friendly. That is why I want to give all kinds of cooperation.
Shibli Rubaiyat-ul-Islam said the capital market has to rely on IT. The global corona epidemic has made it clear. Not much is possible without IT. One class of people often cheats with capital market investors. Information technology can contribute a lot to stop this fraud. We are working towards that goal. He said the government investment institution ICB needs to be strengthened. In the meantime, the work of reorganizing the organization has started. This institution is very important in the capital market. But the organization is far from the purpose for which it was formed.
He added that BSEC is working to increase the depth of the capital market. I have started working with new products. In particular, work is underway to create a dynamic bond market. Sukuk bonds have already been introduced at government and private levels. Work is underway on more. The BSEC chairman said the equity market needs to come out of dependence to take the capital market forward. The commission is working towards this goal. We have approved many bonds. These bonds have begun to bear fruit. The bonds are going to be traded in the future. Foreigners have also started investing in bonds. He added that work is underway to strengthen the weak companies. In the meantime, 4 companies of OTC market have been brought to the main market. 21 companies have applied to go to ATB. Another 18 companies are working to make it better.