The securities regulator is set to allow stock brokers to open trading outlets in different areas of the country to reach the capital market to the people's doorsteps.
As part of the move, the Bangladesh Securities and Exchange Commission (BSEC) has already formulated draft rules for installing trading booths in different areas, initially in municipal towns.
BSEC commissioner Prof. Dr. Shaikh Shamsuddin Ahmed disclosed the formulation of rules for trading booths on Saturday at a webinar on "Technology to protect and assist investors in the capital market," organised to celebrate the World Investors Week 2020.
The Bangladesh Merchant Bankers Association (BMBA) held the webinar, attended by Jasim Uddin Akond, president of the Institute of Cost and Management Accountants of Bangladesh (ICMAB), and Sharif Anwar Hossain, president of the DSE Brokers Association, as the special guests.
"Investors will be able to take part in trading from any part of the country if trading booths are opened by interested brokers. The incumbent commission is also working to ensure easy participation of foreign investors in the country's capital market," Prof. Ahmed said as chief guest of the webinar.
He laid importance on technology adoption and integration, saying transparency and mass participation cannot be ensured without technology.
"Technology will play a vital role in enhancing investors' participation from home and abroad."
The BSEC commissioner also said the securities regulator is mulling over redefining the PSI (price sensitive information) to achieve its objective.
"Our observation is that in many cases, PSI does not reflect the sensitivity that really matters. That's why, the definition of PSI should be modified," Prof. Ahmed said.
In his speech, he also laid importance on transparency of mutual funds.
"Fund managers often talk about investments in non-listed companies to enhance returns. But we must know about the non-listed securities where they want to invest," he said. He said some investments of mutual funds are mentioned in 'others' category which is not clear to the securities regulator and unit holders as well.
ICMAB president said cost auditing should be made compulsory for the listed companies to reduce their losses.
"Investors will be interested if cost auditing is made mandatory for listed companies," Mr. Akond said.
He said compulsory cost auditing will also enrich corporate governance of listed companies along with increasing revenues of the government. Mir Mahfuzur Rahman, a BMBA member, presented the keynote speech at the seminar.
In his speech, Mr. Rahman highlighted the importance of adopting technology-based market operations.
Referring to the example of Hong Kong, he said foreign investors can be allowed to conduct mobile app-based trading, which is facilitating capital market expansion.
BMBA president Sayadur Rahman said many companies witness unsustainable price hike in debut trading as investors do not judge the companies' fundamentals.
"Initially, those companies influence the index to go up but eventually they lose prices leaving negative impact on the index," said the BMBA president, adding that adoption of technology is a must for market expansion.
President of DSE Brokers Association Sharif Anwar Hossain also spoke the webinar.
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