Demutualisation of capital mkt has to be done: Muhith

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FE Report
Finance Minister AMA Muhith underlined the need for demutualisation of the country's stock exchanges for attaining maturity leading to protection of the interest of general investors.
"Since the country's capital market is yet to be developed enough, we want to move ahead cautiously…therefore, demutualisation of the capital market is necessary and it has to be done," he said.
"Interest of general investors who are not well informed about the capital market has to be protected," Mr. Muhith said during a meeting with the newly-elected office bearers of the Dhaka Stock Exchange (DSE), led by its president Md. Shakil Rizvi, at the former's secretariat office.
Additional secretary of Finance Ministry Shafiqur Rahman Patwari, Chairman of the Securities and Exchange Commission (SEC) Ziaul Haque Khandker and immediate past SEC president Md. Rakibur Rahman, among others, present at the meeting.
The finance minister said the government wants healthy but steady expansion of the country's capital market.
"We want to raise our economic growth and for doing so, there is a need to boost investment… Capital market can pave the way for achieving the goals, he said.
The government has already taken some measures including streamlining of the IPO issuing system for promotion of the country's bourses, Mr. Muhith said, adding the government also believes in partnership with the private sector in this respect.
The SEC chairman told the meeting that the share market regulator wants to bring about transparency in the country's share market.
"Transactions in the bourses have increased… Now time has come to consolidate on the trading activities so that more issuers offload shares and investors pour their investment in the market," Mr. Ziaul Haque said.
He further said the SEC will provide all necessary support for making the country's capital market vibrant.
Speaking on the occasion, Mr. Shafiqur Rahman Patwari stressed the need for making the capital market transparent.
Mr Rakibur Rahman expressed his resentment over the delay in the floatation of shares of state-owned enterprises (SOEs), as was decided earlier by the government.
The immediate past DSE president said the government can raise at least Tk 50 billion through floating more shares of already listed SOEs like DESA and DESCO in the capital market.
In response to Mr. Rakibur's remark, the finance minister said decision to float shares of 26 SOEs has already been taken and process is on to implement the same.
Mr. Muhith, however, admitted that some of the SOEs were showing reluctance in floating their shares.
"But we will continue to pursue it," he said regretting that complying with the exact timeframe for the floatation of SOEs' shares might not be possible.
The new DSE president laid importance on boosting of foreign investment for making the country's capital market vibrant and operationally sound.
He also praised the government and finance minister for taking various steps toward the development of the stock market.
Mr. Shakil Rizvi also expressed his intention to work with the government for further promotion of the country's capital market.