Capital market yet to reach its full potential: Khasru

BNP Standing Committee Member Amir Khasru Mahmud Chowdhury said that the country's capital market could not achieve its potential.

"Many investors have taken short-term loans from banks, creating a mismatch. Although the capital market is meant for long-term investment, it has not received expected response," he said.

He was speaking as the chief guest at a workshop titled 'Operational Framework of Commodity Derivatives and its Business Prospects' organised by Chittagong Stock Exchange PLC (CSE) at the Hotel Radisson Blu, Chittagong, on Tuesday evening. CSE Chairman AKM Habibur Rahman presided over the event.

Highlighting the importance of information, he said, "The more information one has, the wealthier he is. The commodity exchange will provide you with various types of information on commodities."

The veteran leader said, "In principle, we have decided that the country's capital market will be deregulated. This will help eliminate corruption and make the capital market more dynamic." He further said that the country's capital market is overregulated, which leads to corruption. "Transparency and accountability are required. Our market is distorted. So it is not functioning properly."

In his welcome speech, CSE Managing Director M. Saifur Rahman Majumder said, "Commodity exchanges have been operating in many countries for 20 years. Even countries with half the GDP of Bangladesh have these exchanges. Commodity exchanges are essential to diversify investment avenues and address the ongoing weakness of the equity-based capital market."

CSE Chairman AKM Habibur Rahman said that the CSE has formulated a work plan for the next six months. "CSE will hold discussions with brokers to explore future business models." He said that they are proud to establish the first commodity exchange in the country. "Commodity exchange is completely a new concept for Bangladesh and a new asset class for the capital market." He sought full cooperation of all stakeholders concerned.

Among others, Directors of CSE Emdadul Islam, Nazneen Sultana, and Mohammad Akter Parvez, and former CSE Director and Chairman of B Rich Ltd. Shamsul Islam were also present.

Besides, experts on commodity exchanges from India Kathir Kamanathan Annamalai, Chief Executive Officer of Chella Software Private Limited, and Subbiya Rajagopal, Senior Vice President (Business Development and Strategic Accounts) presented keynote papers at the event.

Stock brokers, dealers, merchant banks, asset management companies, commercial banks, listed companies, representatives from the commodity ecosystem, and investors participated in the workshop.

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