ADB, Citigroup talk growth of capital market
Friday, 30 November 2007
The top official of Asian Development Bank (ADB) in Bangladesh said the poor IT infrastructure stymied the growth of Bangladesh's capital market, reports bdnews24.com.
ADB Country Director in Bangladesh Hua Du said a lack of access to trading information was a barrier to greater investor confidence.
She also identified deficiencies in financial disclosure, weak corporate governance and a lack of investor's confidence in fixed income securities as major constraints to the growth of capital market.
Hua Du made the observation while speaking at a workshop on "Bangladesh Capital Market-Engine of Economic Growth" co-organised by ADB and Citigroup Global Markets (CGM) Bangladesh Private Limited at a city hotel.
She said the capital market of Bangladesh needed to meet international standards, and had to establish guidelines and procedures for participants in the securities business.
Securities and Exchange Commission (SEC) Chairman Faruq Ahmed Siddiqui emphasised co-ordination between banks, financial institutions and regulatory bodies to develop the market.
He said more entities, both public and private, should participate.
The SEC chief lauded the government's move to offload shares of public sector entities on the bourses.
He said private sector participation was sluggish and the reasons should be identified.
Siddiqui stressed the need to review initial public offering (IPO) face values because they increased significantly a day after being listed on the exchanges. This did not benefit issuers, he added.
He said the SEC was outlining measures to review IPO prices before they appeared on the bourses.
The workshop was led by international and local experts from the ADB and Citigroup to share best practices in global capital markets.
The meeting was attended, among others, by regulators, financial market intermediaries, leading listed and non-listed corporations in Bangladesh and other important stakeholders.
ADB Country Director in Bangladesh Hua Du said a lack of access to trading information was a barrier to greater investor confidence.
She also identified deficiencies in financial disclosure, weak corporate governance and a lack of investor's confidence in fixed income securities as major constraints to the growth of capital market.
Hua Du made the observation while speaking at a workshop on "Bangladesh Capital Market-Engine of Economic Growth" co-organised by ADB and Citigroup Global Markets (CGM) Bangladesh Private Limited at a city hotel.
She said the capital market of Bangladesh needed to meet international standards, and had to establish guidelines and procedures for participants in the securities business.
Securities and Exchange Commission (SEC) Chairman Faruq Ahmed Siddiqui emphasised co-ordination between banks, financial institutions and regulatory bodies to develop the market.
He said more entities, both public and private, should participate.
The SEC chief lauded the government's move to offload shares of public sector entities on the bourses.
He said private sector participation was sluggish and the reasons should be identified.
Siddiqui stressed the need to review initial public offering (IPO) face values because they increased significantly a day after being listed on the exchanges. This did not benefit issuers, he added.
He said the SEC was outlining measures to review IPO prices before they appeared on the bourses.
The workshop was led by international and local experts from the ADB and Citigroup to share best practices in global capital markets.
The meeting was attended, among others, by regulators, financial market intermediaries, leading listed and non-listed corporations in Bangladesh and other important stakeholders.