Regulators\' \'reluctance\' mars MNCs\' share trade

Relevant authorities' reluctance about clearing the way has held back foreign companies in Bangladesh to get listed with the bourses, sources said.
Officials concerned said the government move to motivate the foreign firms for the listing hardly made any progress mainly for "noncooperation" in sending necessary recommendations by the regulator and relevant agencies.
The finance ministry had asked the regulator and agencies to recommend within 15 working days ways to lure the multinational companies (MNCs) into the securities market. The directive came from a meeting held last November.
"The authorities didn't yet submit any recommendation nor did they giver answer to the direction. We, again, have asked the relevant agencies to give necessary recommendations within next seven days," a senior official at Bank and Financial Institutions Division (BFID) told the FE last week.
"We are working on the issue sincerely. No major progress has been made yet for lack of necessary recommendations and information. A meeting is likely to be held at a convenient time where appropriate decision will be taken in the light of the suggestions/ recommendations," he said.
The multinational companies operating business in the country were not listed with the stock market at expected level. It is less than those in India and Pakistan, a finance ministry source said.
The move will help make the country's stock market vibrant if it is shaped finally, he said, adding that it is high time for the listing of new multinational companies as the bourses are performing well now.
The government wants to make the market more stable for the sake of the investors and the economy. Enlistment of several new MNCs would help prop up the stock market, he also said.
The Bangladesh Securities and Exchange Commission (BSEC) had proposed to hold a meeting with the representatives of the MNCs to bring them onto the capital market in the last meeting (November meeting), a source familiar with the process mentioned.
"Foreign companies who invest in EPZs first have to register with the Registrar of Joint Stock Companies and Firms (RJSC). So, it is not possible to bring them to the capital market by force. But the government authorities can take various initiatives to motivate them to enlist the foreign companies with the stock market," he said.
Currently, there are 258 foreign companies and 71 joint-ventures in the country, according to Bangladesh Export Processing Zones Authority (BEPZA).
Only 13 multinational companies with minimum number of shares are now listed on the two bourses of the country while 42 others have yet to offload their shares for public trading.
rezamumu@gmai.com