State minister urges RMG cos to join capital market

Our Correspondent | Published: September 14, 2018 11:59:39 | Updated: September 16, 2018 11:30:30

Terming the readymade garment (RMG) sector as lifeline of the country's economy, State Minister for Land Saifuzzaman Chowdhury MP has urged the local RMG manufacturers to get listed with the capital market to make the market vibrant and draw benefit from it.

He said the businesses should depend on the capital market for long-term funding, and on the banks for the short-term funding.

But, instead of doing it, they are now depending solely on the banks for long-term funding. In most of the developing countries the capital market provides long-term funding for the major industrial projects, he noted.

The state minister said these on Thursday while speaking as the chief guest at a seminar - 'Sustainable Economic Growth through Capital Market'.

Chittagong Stock Exchange (CSE) and Central Depository Bangladesh Ltd (CDBL) jointly organised the programme at Chittagong Club auditorium in Chittagong city on the occasion of Silver Jubilee of Bangladesh Securities and Exchange Commission (BSEC).

CSE Director Dr Moinul Islam Mahmud presided over the seminar, where BSEC Commissioner Dr Swapan Kumar Bala was the special guest.

Mr Saifuzzaman also said the capital market lacks proper policy support for sustainable growth, and its regulatory body should formulate policies and guidelines considering the prevailing situation in a developing country like Bangladesh.

He opined that the government is providing sufficient support to the capital market and the regulator concerned. So, the present government cannot be blamed for the lack of growth of the capital market.

CSE Managing Director M Shaifur Rahman Mazumder and CDBL Managing Director and CEO Shuvra Kanti Choudhury made presentations on CSE and CDBL respectively.

Professor Dr Akter Hossain of Finance Department, Chittagong University, presented a technical paper - 'Potential Development of Capital Market in Bangladesh: A Study on the Role of CSE'.

Former first vice president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) M A Salam was its panel discussant.

Director of CSE Md Emdadul Islam presented the second technical paper - 'Development of Commercial Capital Chittagong for Economic Growth'. Editor of Daily Purbokone Jashimuddin Chowdhury was the panel discussant.

The CSE MD said the bourse has been playing a pioneering role in automation, demutualisation, and internet-based trading, and also organised the first capital market fair in the country.

Its future products include bond market, derivative market, commodity exchange, junior exchange for SME or separate platform within the existing market, and exchange trade funds and green bonds for sustainable development etc.

Mr Emdadul Islam said the market players should think why the market share of CSE has come down to only three percent against the 97 percent of Dhaka Stock Exchange (DSE).

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