Govt eyes market overhaul into 'regional powerhouse' through new commission

Government high-ups and newly appointed commissioners of the securities regulator have vowed a complete overhaul of the secondary market by addressing key concerns that are hampering market growth.
"Our goal is not just to fix the market but to build it into a regional powerhouse, a goal that is mathematically feasible," said the Prime Minister's special assistant Tanvir Ghani while speaking at a press conference on Thursday.
Alongside him, Nazma Mobarek, secretary of the Financial Institutions Division, also spoke at the briefing held at the office of the Bangladesh Securities and Exchange Commission (BSEC).
Newly appointed BSEC Chairman Masud Khan and three commissioners - Md. Nafeez Al Tarik, Tanvir Habib Rahman and Nahid Mahtab - were also present.
Achieving the target requires resolution of issues regarding mutual funds and issuers, as well as fostering trust among intermediaries.
"We intend to implement self-regulation, which is a standard system in capital markets globally, as much as possible," said Mr Ghani.
He said an economy could not grow by being solely dependent on the banking sector. "The capital market is the only way forward for Bangladesh, and we must introduce a wide variety of financial products."
Mr Ghani also said foreign investors prioritise two things: liquidity and documentation. "They must be able to trust the data they read and compare it with neighbouring countries' using international standards."
FID Secretary Mobarek said the capital market is very important for the economy to be productive.
While the country's capital market has remained constrained for many reasons, long-term financing through banks has dragged them into trouble. At the same time, savings of ordinary people are not being channelled into productive sectors.
"We are all optimistic that the country's capital market will gain momentum," through restoration of discipline by the new commission, Ms Mobarek added.
Newly appointed BSEC Commissioner Nafeez Al Tarik said they took up the responsibility at a time when the market was facing an acute crisis of investor trust.
"We must ask ourselves what kind of capital market new generations would want.
"They are unlikely to want the market of the past; instead, they will seek a technology-dependent, free and fair capital market," said Mr Tarik, adding that the new commission would work toward building that market and seek everyone's cooperation.
Commissioner Nahid Mahtab said one of their most important responsibilities as a regulatory body was to ensure that existing laws and regulations were properly implemented and enforced.
Commissioner Tanvir Habib Rahman said he expected Bangladesh to adopt the best practices of London-based stock markets. "We seek the cooperation of all stakeholders."

mufazzal.fe@gmail.com