Bangladesh Securities and Exchange Commission (BSEC) Chairman Prof Shibli Rubayat-Ul-Islam is hopeful of bringing a major changes in the stock market of the country within next two years.
"We have taken some bold steps for continuing the positive trend in the stock market," the BSEC chairman said while addressing the maiden 'Economic Reporters’ Forum (ERF) Dialogue on Business and Economy’ at the ERF office in Dhaka on Saturday, according to a press release.
"Currently, the size of country's stock market is Tk 5.0 trillion, which was Tk 3.5 trillion even a few months ago. It mainly indicates a positive trend of the markets," the BSEC chairman said.
He informed that the BSEC has targeted at least six big local industrial conglomerates to bring them in the stock markets to remove the crisis of quality shares.
"The annual turnover of those six companies is above $2.5billion. And of the six companies, one is more nearly $4.0 billion annual turnover company," the chairman said.
“The company, which has the $4.0 billion turnover, has already contacted the BSEC for offloading its share on the stock market,” he said.
However, the chairman declined to mention the names of those companies.
While talking about some steps for strengthening the stock market, he said that the BSEC has initiated process for revival of the bond transactions in the market and to enlist new kinds of bonds from home and abroad.
He mentioned about the listing of Sukuk bond.
The BSEC has also been receiving responses from other major global business districts like Australia, Toronto and in the UK for holding the roadshows in those areas for investing in bonds on the stock markets.
Regarding the forgery in the audit report by a section of listed companies on the markets, the BSEC chairman said the BSEC has been working with other regulatory bodies for agreeing on accepting the unified audit reports as many companies publish forged audit reports in connivance with a section of unscrupulous audit companies.
While talking about the role of stock market in generating capital for industrialisation , he said the bourses should be the ground for long term financing instead of banks.
Admitting that banks provide long term finance due to absence of strong financing capacity by the bourses, he said, "If any bank finances for a long time like for 10 years it is viable for this bank, it can finance for at least two to three years. But in Bangladesh the banks are financing for 25 years or more,".
ShibliRubayat-Ul-Islam also said the BSEC has started investigation into an allegation of anomalies in the Padma Bank.
"The stock market regulatory body will take action as per the law after investigation," he said.
However, the BSEC chairman did not disclose detail about the allegation.
ERF President Sharmeen Rinvy chaired the discussion and ERF general secretary SM Rashidul Islam moderated the event.