The Bangladesh equity market was extremely depressed due to mass exodus of investors from the stock exchanges after the share market disaster of 1996 and 2011. However, the market regained some of its momentum in the last couple of years, speakers at a seminar on Friday, 06 October 2017 said.
Making Equity market as regular sources of finance for the real economy is a must for sustainable economic development. A number of measures are required to be undertaken in this respect. Ensuring smooth operation of primary and secondary market, increasing financial literacy among investors, minimizing volatility of the market, expanding issuer base, creating both individual and institutional investors, enhancing efficiency of the brokerage house, adding innovative financial services, initiating knowledge based trading, rationalizing cost of generating funds and costs of funds, lessening formalities involved and required documents, introducing shelf registration system are suggested here to uplift equity market to an expected level.
As part of observing the World Investors’ Week, the Institute of Chartered Accountants of Bangladesh(ICAB) organized a seminar on ‘capital market & economy; role of investors’ at ICAB Auditorium, CA Bhaban, Dhaka.
Prof. Dr. M. Khairul Hossain, Chairman, Bangladesh Securities and Exchange Commission(BSEC) graced the occasion as the Chief Guest. Three BSEC Commissioners Prof. Md. Helal Uddin Nizami, Md. Amzad Hossain, Commissioner and Dr. Swapan Kumar Bala FCMA were present as Special Guests.
Saifur Rahman, Executive Director, BSEC and K. A. M Majedur Rahman, Managing Director, Dhaka Stock Exchange Ltd were also present as Guests of Honour. Mostafa Kamal FCA, Acting President - ICAB delivered the address of welcome while Md. Shaifur Rahman Mazumdar FCA, FCMA, Member Council -ICAB conducted the seminar as the Session Chairman.
Dr. Prashanta Kumar Banerjee, Professor & Director, Research Development and Consultancy, Bangladesh Institute of Bank Management (BIBM) presented the Key-note paper.
Prof. Dr. M. Khairul Hossain, Chairman, Bangladesh Securities and Exchange Commission(BSEC) said that the ratio of GDP growth and the Capital Market capitalization is very low in our country comparing in other countries like USA, Honkong, Singapore, India, etc. He said in our country Capital Market is yet to develop properly to contribute the economy. If the proportion of GDP growth and capital market capitalization is increased, the economy of the would also be developed, he added. He said after 2010, BSEC have taken a number of initiatives like introduction of automated trading through electronic registration and transfer of securities, guidelines for conversion from close- end mutual funds to open–end mutual funds, promulgation of Bangladesh Securities and Exchange Commission Rules (exchange traded funds) 2016, guideline for issuance of financial derivatives-2016, guidelines on corporate governance on compliance, conducting several financial literacy programs to bring the investors’ confidence in the market. He also informed that BSEC would introduce corporate governance guidelines very soon.
He said foreign investors considering two things; return of their investment and the risk, after assessing these they take decision for investment. In these aspects, Chartered Accountants can play a very vital role through establishing comparability of the financial disclosures which considered very important to foreign investors.
Dr. Swapan Kumar Bala FCMA, Commissioner, BSEC said that CAs are knowledge professional accountants who knows how to protect the general investors. Auditing is very important valued added services to the economy. He urged the professional chartered accountants to be more pro-active in delivering their services and in increasing quality instruments in the capital market so that investors feel secured while they take decision for investment. He said ICAB is very proactive to response the query of BSEC and it would continue its service.
ICAB Acting President Mostafa Kamal FCA said to protect the interest of the investors is the responsibility of all. Bangladesh has a bigger number of small investors comparing to any other countries, but they are not much capable to take decision indolently. To educate and make awareness ICAB has organized the seminar as it is one of the stakeholders of BSEC and the capital market, he added.
BSEC other commissioners Prof. Md. Helal Uddin Nizami, Md. Amzad Hossain and Executive Director Saifur Rahman, and Managing Director, Dhaka Stock Exchange Ltd K. A. M Majedur Rahman also spoke on the occasion. ICAB Vice President Md. Mahamud Hosain FCA gave concluding remarks.