Call for mandatory listing of MNCs

Compulsory provision should be framed to get multinational companies (MNCs) listed on the country's stock exchanges and ensure good governance in the capital market, experts said on Tuesday.
The suggestion came at a webinar titled 'Awareness programme on dealing with investors' arranged by the Dhaka Stock Exchange (DSE) marking the World Investor Week 2020.
Chairman of the Bangladesh Securities and Exchange Commission (BSEC) Prof. Shibli Rubayat Ul Islam was present as the chief guest.
DSE chairman Md. Eunusur Rahman said many countries have enacted mandatory provision for listing the MNCs on their stock exchanges.
"The government had earlier decided to make it mandatory for MNCs to get listed on our stock exchanges. Unfortunately, the decision was not implemented due to reasons unknown," he said.
He also said the incumbent commission should move forward so that the government makes the listing of MNCs mandatory to enhance the depth of the capital market.
In his speech, BSEC chairman Prof. Islam said the role of the securities regulator is to ensure good governance in the capital market.
"The securities regulator has no hand in turnover values. So, it's not logical to make the BSEC responsible for turnover values featured by the stock exchanges," he said.
President of Metropolitan Chamber of Commerce & Industry, Dhaka (MCCI) Nihad Kabir said the growth of the country's capital market failed to keep pace with the growth of economy.
"We hope the gap will be reduced in near future following strong leadership of the incumbent commission," she said.
Md. Rakibur Rahman, a DSE director, said the index of the stock exchange was controlled previously.
"Presently, the trade volume remains almost unaffected amid volatility of index. It's a positive sign of the capital market," he said.
Mr. Rahman said the market cannot be vibrant without introduction of new products in the capital market.
He has proposed to reduce the trading cycle to T+1 from T+3.
"Asset valuation of the companies willing to go public must be accurate to keep investors unaffected after listing," he said.
BSEC spokesperson Mohammad Rezaul Karim said the stock exchanges will have to ensure the safety of investors' assets such as cash and securities.
DSE managing director Kazi Sanaul Hoq said vibrancy of the capital market will be hampered if investors are affected while making investments in the market.
In his keynote speech, chief financial officer (CFO) of the DSE Abdul Matin Patwary highlighted the role of investors, traders, stock exchanges and other stakeholders of the capital market.
Director of the DSE Md. Shakil Rizvi, Vice president of Bangladesh Association of Publicly Listed Companies (BAPLC) Reaz Mahmud and the president of DSE Brokers Association Sharif Anwar Hossain, among others, also spoke at the webinar moderated by DSE chief operating officer Shaifur Rahman Mazumdar.

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