CHATTOGRAM, Oct 10: The capital market is not expanding commensurate with economic progress as the investors are still shaky, according to experts.
They spoke of the market's huge potential to contribute to the national development.
The investors are shaky because their level of knowledge about investment in the market has not grown up and enriched, they said.
The regulators and stock exchanges must undertake programmes for institutional training, knowledge sharing and awareness of the market trends.
The experts sais this at a seminar on the Investor Protection hosted by Chittagong Stock Exchange (CSE) marking World Investor Week 2018 on Wednesday.
CSE Managing Director M Shaifur Rahman Mazumdar made a welcome address at the event at a city hotel presided over by CSE Chairman Dr AK Abdul Momen.
Bangladesh Securities and Exchange Commission (BSEC) Commissioner Prof Md Helal Uddin Nizami was present at the seminar as the chief guest.
CSE Chief Regulatory Officer Md Shamsur Rahman presented a technical paper on investor protection as per regulatory framework of Bangladesh.
Bangladesh House Building Finance Corporation chairman Prof Dr Salim Uddin, CSE director Maj (retd) Emdadul Islam and EBL Securities Ltd managing director and CSE director Md Sayadur Rahman spoke as panel discussants.
Prof Nizami said capital market investors are the key stakeholders and they can play a crucial role in the nation-building activities.
The days of manipulating the market by vested quarters are gone. Nobody will be able to deceive the investors for multiple preventive measures to protect them, he added.
Prof Nizami said it is very essential that the investors are well aware of the companies in which they are investing and also the market trends.
He said the BSEC took up a 10-year master plan in 2011 which is due to end by 2022.
"Good news is we're going to implement the plan two years ahead of schedule," he added.
Prof Salim Uddin said multiple measures need to be taken to protect interest of the investors.
Effective investor protection acts are incentive to healthy environment of business contributing to the development of financial markets and improving competitiveness of economy as a whole, he added.
Maj (retd) Emdad said every investor must make sure he or she is investing in a company that will give them benefit.
Mr Mazumdar said expansion and growth of the capital market depend fully on the role of the investors and bourses and regulators are providing support to the investors in this regard.
Mr Shamsur Rahman said investor protection promotes confidence by reassuring them that their interests are being safeguarded against the market manipulation and malpractices and that recourse against such malpractices is available.
A smart investor understands that risk exists in all investments, avoids "get rich quick" and "can't lose" schemes and plans for and invests according to his/her future needs and goals, he mentioned.
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