The country's IT firms have urged the securities regulator to reduce 70 per cent paid up capital of the companies willing to go public, officials said.
They said the required amount under the Bangladesh Securities and Exchange Commission (BSEC) for listing in the stock market is quite high.
A BASIS delegation recently met the BSEC Chairman Prof Dr M Khairul Hossain over the issue and demanded fixing Tk100 million paid up capital for the IT industry instead of the existing amount of Tk 300 million.
"We, therefore, urged the securities regulator to reduce the paid-up capital for listing of IT companies in the stock market," said Shameed Ahsan, president of the Bangladesh Association of Software & Information Services (BASIS).
BASIS is the national trade body, having 800 companies under its network, working to promote software and IT enabled service industry in Bangladesh.
"The growing IT sector has emerged as one of the major potential industries in the country," the BASIS president said adding that it requires financial support to get the full benefit.
"We hope the securities regulator will take necessary measures in this connection," Mr Ahsan said and added that once they get the scope, the industry could expand the business in sync with the market demand.
Capital market is one of the main sources of long-term financing for the business and industries, way of mobilising savings to investment, and provider of price discovery and liquidity generation through organised stock exchanges.
The association president told the FE that if the authorities reduce the paid up capital, at least 10-15 IT firms could be enlisted for IPO that will help getting required financial support.
Presently, only six IT companies --- Aamra Technologies, Agni Systems, BDCOM Online, Daffodil Computers and Information Services Network are listed with the stocks exchanges.
Mr Ahsan said that participation of IT companies in the capital market will help the local companies to be branded internationally which will also help attracting international investment in the country.
However, the market's regulator's, BSEC, spokesman Saifur Rahman told the FE that the proposal of BASIS of reducing the paid up capital by almost 70 per cent is unrealistic.
"However, once the association applies with the securities commission formally, then the commission will consider the proposal," Mr Rahman said.
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