Implement reforms to restore investor confidence

Experts tell DBA discussion

FE Team | Published: November 02, 2024 22:34:27

FE REPORT
Experts urged the government to implement effective reforms in the capital market and related institutions to restore investor confidence, which has long been undermined by corruption and irregularities.
"The current dismal state of the capital market is the result of widespread corruption, irregularities, inefficiency, and poor decision-making," said Mominul Islam, chairman of Dhaka Stock Exchange at a discussion on Saturday.
The DSE Brokers Association of Bangladesh (DBA) organised the discussion on 'Bangladesh capital market: Present context and Future Plans' in the city.
The speakers proposed analysing the current situation of the capital market and adopting future strategies for its development.
"Our country faces corruption, a lack of justice, inefficiency, and poor decision-making. All of these factors contribute to the current stagnation of the capital market," said the DSE chairman.
"In the era of a free economy, the stock market is one of the most beautiful creations, and the capital market cannot be viewed as an isolated island," he said.
"But in our country, we have allowed the stock market to deteriorate, reflecting the state of our overall economy and politics," he added.
The DSE chairman also pointed out that the psychology of retail investors is a big issue.
"People in our country want to get rich overnight by investing in the capital market while many officials of the securities regulator are also involved in market manipulation," he said. "We need to transform the investing culture in our country."
He also criticised the stock market regulator for frequently interfering in the market. Instead, he suggested that the BSEC should operate as a super regulator while further empowering the stock exchanges.
The Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) face numerous challenges and need to become more transparent in order to promote the development of the capital market.
"We must work to improve the transparency of these institutions. We are focused on enhancing the institutional capacity and competence of the DSE," said the DSE chairman.
DBA President Saiful Islam said that they seek a more positive attitude from the interim government toward the capital market.
He also said the interim government should take positive steps toward reforms and recognise that the capital market is crucial for the country's economic growth.
Capital Market Journalist Forum President SM Golam Samdani Bhuiyan said, "The new commission was formed after the political changeover, but we have not yet seen the expected results from this commission."
He added that many corrupt officials from the BSEC continue to work with the new commission, even though the Anti-Corruption Commission (ACC) is investigating some of their alleged corruption.
Among others, senior journalists shared their views at the event.
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