Bangladesh's stock markets vs. India's

The Indian stock exchange outperforms the Bangladeshi stock market in terms of scale, diversity, and investor trust. India's Bombay Stock market (BSE), Asia's oldest, currently has an index value of 77,580.31 points, whereas the Dhaka Stock Exchange (DSE) index is very tiny at 5,328 points. This imbalance is not only numerical, but also reflects the significant differences in market depth, size, and functionality between the two countries.

India's financial markets have evolved with the BSE and National Stock Exchange (NSE) offering a wide range of goods, including equities, commodities, and derivatives. Cutting-edge trading technologies, transparent regulatory monitoring, and a stable economic environment have attracted significant foreign direct investment. The presence of a booming commodities market boosts India's position by allowing investors to effectively hedge risks and diversify their portfolios.

Bangladesh, by contrast, has a long way to go. The DSE and Chittagong Stock Exchange (CSE) are significantly smaller, and the lack of a commodities market restricts investor alternatives. Investor trust has been weakened by a lack of diversification in publicly traded companies, poor corporate governance, and frequent claims of market manipulation. Furthermore, regulatory frameworks frequently fail to address structural flaws, making the market susceptible to inefficiencies and distrust. The numbers explain part of the picture, but the underlying processes reveal a much larger discrepancy. While Indian exchanges adhere to global transparency and efficiency requirements, Bangladesh's market suffers from obsolete technology and limited participation. To reestablish investor faith, Bangladesh must implement significant reforms. Transparency, diversification of market offerings, and strong governance are essential for fostering a market environment in which investors feel safe.

Tanvir Mahmud

North South University

Department of Accounting and Finance

[email protected]