Bangladesh's stock market has shrunk nearly 48 per cent in its real value over the past 15 years due to persistent irregularities, weak coordination among key institutions, and high inflation, said Md Saifuddin, Commissioner of the Bangladesh Securities and Exchange Commission (BSEC), on Wednesday.
The prolonged inefficiency in the market has also eroded investor confidence, he added.
"Investors don't see us as good people. They think those who run the capital market are all corrupt; and unfortunately, there is reason behind that perception," said Saifuddin. "We must change ourselves."
He was speaking as the chief guest at a seminar titled 'Empowering Investors through Emerging Technology & Digital Finance'. The event was jointly organised by the Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), DSE Brokers Association of Bangladesh (DBA), and Central Depository Bangladesh Limited (CDBL) to mark the World Investor Week 2025.
The BSEC commissioner described the lack of coordination among the market's main stakeholders as a major roadblock to building a modern, transparent, and technology-driven capital market.
"If we truly want to transform the market, we must act now. Sit together, talk to one another-whether it's the Commission, ICAB, CDBL, or CCBL. Communication and cooperation must increase," he urged.
Explaining the absence of strong initial public offerings (IPOs) in the last 18 months, Saifuddin noted a widespread misunderstanding about what makes a capital market vibrant. "We often talk about product diversity in IPOs when the real discussion should be about investable assets," he said.
Push for transparency, digital oversight
Stressing the need for corporate transparency, Saifuddin called on the Institute of Chartered Accountants of Bangladesh (ICAB) to enforce stricter oversight on financial reporting.
"Trust is our only asset to investors. Once that trust is broken, the market will collapse. Financial reports must be prepared with the sanctity of a priest," he said.
He announced that the Commission is taking steps to introduce machine-readable financial reports using the SBRM (Standard Business Reporting Model) format, aligned with IFRS standards, to enhance reporting quality and transparency.
Industry leaders echo need for reform
DBA President Saiful Islam presented the keynote paper, stressing the importance of building a technology and information-driven investment culture.
"Empowering investors through emerging technology and digital finance is crucial for Bangladesh's financial stability and broader economic modernisation," he said.
He outlined four key strategies for investor empowerment-education and awareness-raising, digital tools for risk management, inclusive digital participation and transparent information disclosure.
Islam noted that while investor participation-both individual and institutional-is growing rapidly, challenges remain, including limited access to real-time data, financial illiteracy, product complexity, and digital misinformation.
Market heads weigh in on tech and oversight
DSE Chairman Mominul Islam said that although new products and technologies have entered the capital market, the expected benefits have yet to be fully realised.
"We have invested heavily in technology. But we did not benefit from it very well," he said.
CSE Chairman AKM Habibur Rahman echoed the sentiment, pointing out that fraud and irregularities persist despite automation and digitisation.
"The main purpose of using technology is to increase efficiency, transparency, and productivity. However, for this to succeed, we must strengthen reporting, surveillance, and monitoring systems," he said.
Shubhashish Bose, CEO of ICAB, said the institute remains committed to protecting investor interests.
In response to a query, he revealed that ICAB has taken disciplinary action against several chartered accountants, including suspension or revocation of Certificates of Practice and financial penalties for misconduct.
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