Entry of big cos to change stock market scenario: SEC chief
Thursday, 29 November 2007
FE Report
Securities and Exchange Commission (SEC) Chairman Faruq Ahmad Siddiqi Wednesday said the scenario of the country's stock market will be changed with the entry of big companies by the next couple of years.
"It is very encouraging that investors' confidence has been restored in the stock market and this pace could be sustained if more and more companies go public," the SEC chairman said while addressing the closing session of a seminar titled 'Bangladesh capital markets -- Engine of economic growth'.
The SEC chief, however, said the existing pricing system of the initial public offering (IPO) should be changed so that entrepreneurs get proper price for their issues.
Asian Development Bank (ADB) and Citigroup Global Markets Bangladesh Private Limited jointly arranged the day-long seminar at a city hotel.
ADB country director Hua Du and MD and Citi Country Officer Mamun Rashid also addressed the closing session.
The seminar attended by international and local experts of capital market provided a platform for discussing the current state of Bangladesh securities market and possible areas for further development, particularly focusing on 'book building system' in the primary market.
Hua Du in her speech called upon the non-listed public limited companies to float shares to help widen the despite of the present market.
"The big companies should ensure their transparency and accountability and also enhance their ownership by going public," Hua Du said.
She also stressed the need for widening the ICT support in the operations of the stock market.
Assuring further assistance for the development of the capital market in Bangladesh, she said some encouraging developments took place in recent years.
The SEC chief said absence of a modern IPO fixing method is one of the reasons discouraging a good number of non-listed companies to go public.
Faruq Ahmad said the regulatory body is working along with the bourses to introduce the book-building system in the IPO market so that big companies come forward to go public.
He said most of the new IPOs in recent years floated shares in compliance with the regulatory framework, but there should be an enabling environment so that all public limited companies come forward willingly in the stock market.
"The entrepreneurs should be convinced that they can raise funds from the stock market rather than the traditional banking system, which is expensive," the SEC chief asserted.
He said the year 2007 will remain as a remarkable year in the history of Bangladesh capital market as the total market capitalisation crossed $10 billion-mark last month (October), which was below $5.0 billion in December, 2006.
Securities and Exchange Commission (SEC) Chairman Faruq Ahmad Siddiqi Wednesday said the scenario of the country's stock market will be changed with the entry of big companies by the next couple of years.
"It is very encouraging that investors' confidence has been restored in the stock market and this pace could be sustained if more and more companies go public," the SEC chairman said while addressing the closing session of a seminar titled 'Bangladesh capital markets -- Engine of economic growth'.
The SEC chief, however, said the existing pricing system of the initial public offering (IPO) should be changed so that entrepreneurs get proper price for their issues.
Asian Development Bank (ADB) and Citigroup Global Markets Bangladesh Private Limited jointly arranged the day-long seminar at a city hotel.
ADB country director Hua Du and MD and Citi Country Officer Mamun Rashid also addressed the closing session.
The seminar attended by international and local experts of capital market provided a platform for discussing the current state of Bangladesh securities market and possible areas for further development, particularly focusing on 'book building system' in the primary market.
Hua Du in her speech called upon the non-listed public limited companies to float shares to help widen the despite of the present market.
"The big companies should ensure their transparency and accountability and also enhance their ownership by going public," Hua Du said.
She also stressed the need for widening the ICT support in the operations of the stock market.
Assuring further assistance for the development of the capital market in Bangladesh, she said some encouraging developments took place in recent years.
The SEC chief said absence of a modern IPO fixing method is one of the reasons discouraging a good number of non-listed companies to go public.
Faruq Ahmad said the regulatory body is working along with the bourses to introduce the book-building system in the IPO market so that big companies come forward to go public.
He said most of the new IPOs in recent years floated shares in compliance with the regulatory framework, but there should be an enabling environment so that all public limited companies come forward willingly in the stock market.
"The entrepreneurs should be convinced that they can raise funds from the stock market rather than the traditional banking system, which is expensive," the SEC chief asserted.
He said the year 2007 will remain as a remarkable year in the history of Bangladesh capital market as the total market capitalisation crossed $10 billion-mark last month (October), which was below $5.0 billion in December, 2006.