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Stock market needs diversified products

BSEC commissioner says

FE REPORT | October 07, 2021 00:00:00

Bangladesh Securities and Exchange Commission (BSEC) has underscored the need for bringing diversified products to enhance the country's capital market strength.

"Our capital market is 85 per cent equity-based. But a good capital market should have one-fifth equity. If we can bring bonds, derivatives and commodity products, the stock market will be more vibrant," said BSEC Commissioner Dr. Shaikh Shamsuddin Ahmed.

The investors' investment will also be more protected as well, he said.

He was speaking as the chief guest at a webinar titled 'Sustainable Finance in the context of capital market' organised by the Chittagong Stock Exchange (CSE) on the occasion of 'World Investor Week-2021' held virtually on Wednesday.

CSE Chairman Asif Ibrahim was the special guest. Prof. Dr. Mohammad Saleh Juhur, Department of Finance at Business Administration Faculty at University of Chittagong, presented the keynote paper. Mohammad Golam Faruk, managing director of CSE (Acting) delivered the welcome speech.

Shamsuddin Ahmed said the commission has approved one or two green bonds, so far. But, no blue bond has been approved till date.

Hopefully, CSE will be able to offer an environmentally friendly blue bond soon, he said.

He said the main objective of World Investor Week 2021 is to make people aware. "As the capital market investment is risky, investors should invest wisely".

Investors need to know about the products they are investing in, possible return, opportunities and the risk factors as well, he said.

He said they have been providing regular classes on various issues of the market through two of its wings - academy for securities market and institute of capital market.

"I hope people who want to invest in the market will take the opportunity and make the right decision," he added.

Shamsuddin Ahmed urged the investors who cannot directly participate in investment education or awareness training to visit the BSEC website or go to Financial Literacy BD.com and get a comprehensive idea about investment education.

The BSEC commissioner said, market stakeholders, including various institutions, must remember that investors are the life-blood of the stock market.

"If we give more facilities and protections to the investors, our investment environment will be improved. At the same time the country's economy will grow".

Asif Ibrahim said sustainable finance means investment decision in financial institutions considering environmental climate change mitigation.

Golam Faruq said to ensure long-term and sustainable financing, the company should maintain environment, social welfare and governance.

Mohammad Saleh Juhur explained the environment, social and governance in the context of world stock exchanges.

This webinar is series of programee marking the 'World Investor Week-2021' in accordance with the declaration of International Organisation of Securities Commissions (IOSCO), a global cooperative of securities regulatory bodies.

The BSEC launched the 'World Investor Week 2021' on Monday. Throughout the week, stakeholders, intermediaries, stakeholders' association will arrange various programmes to mark the World Investor Week.

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