CSE chairman upbeat on new IPO process

Our Correspondent | Published: September 05, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

CHITTAGONG, Sept 4: Chittagong bourse chairman Dr Muhammad Abdul Mazid said on Thursday that introduction of the new IPO (initial public offering) would have a positive impact on the capital market as it would help build investor confidence in the post-demutualisation market.
"It is a landmark initiative of Bangladesh Securities and Exchange Commission (BSEC) and the Chittagong Stock Exchange (CSE) welcomes the step introduced from this September to ease the IPO application process," the CSE chairman said at the Orientation Programme of TREC (trading right entitlement certificate) holders at the CSE conference hall.
The new system would expedite the IPO process and the capital/liquidity would remain in the capital market. The system would help boost the secondary market besides encouraging the primary market. It would create a new avenue of income for the TREC holders.
Dr Sajid Hossain, managing director of Island Securities Ltd, Mohammed Mohiuddin, Shamsul Islam and Ahmed Dawood also took part in the discussion on the Capital Market Development Programme--111 (CMDP-111).
The CSE is closely working with the BSEC and the ADB (Asian Development Bank) for the Capital Market Development Programme -111 (CMDP-111) and the CSE believes that this programme will immensely contribute to development of the capital market.
Dr Mazid said the CSE conducted several awareness and training programmes in Dhaka, Sylhet and Chittagong. The CSE was also examining the training curriculum of Thailand, Malaysia and Australian capital markets for preparing a curriculum adoptable in Bangladesh for the investors.
In reply to a query, he said the turnover in the CSE would rise and foreign trade would grow by the year end, although the turnover is currently far below expectation compared to that of the DSE (Dhaka Stock Exchange). Financial institutions and foreign investors are always with the DSE and it is one of the reasons for it, he added.
Mohammed Mohiuddin said the capital market would not grow systematically unless it is not included in the formal education system.