Share trading on the DSE SME Platform started on Thursday, creating an opportunity for small and medium enterprises (SMEs) to raise capital from the stock market.
Initially, trading on the Dhaka Stock Exchange (DSE) board for SME began with six companies after two and a half years of its inauguration.
The transaction opening ceremony was held at the DSE Tower presided over by Md. Eunusur Rahman, chairman of the DSE where Dr. Mizanur Rahman, commissioner of Bangladesh Securities and Exchange Commission (BSEC) was present as the chief guest.
Dr. Masudur Rahman, chairman of the SME Foundation was present as a special guest where Tarique Amin Bhuiyan, managing director of the DSE, and a good number of SME entrepreneurs, were present, among others.
Shaifur Rahman Mazumdar, chief operating officer of the DSE presented the keynote paper.
"The DSE has now become a part of history in the listing of the SMEs," said Md. Eunusur Rahman, chairman of DSE during the opening bell ceremony.
The country's economy and capital market will be more dynamic as small capitalised companies will have the opportunity to raise the required capital by listing on the DSE, said Mr Eunusur.
"The SME sector plays a major role in technological innovation, job creation, export growth, industrialisation and poverty alleviation".
As a country of emerging economies, many small companies are not able to reach their desired goals due to a lack of necessary funding having opportunities for business development and expansion, he said.
"This is our initiative to provide opportunities for the development and expansion of small capital businesses," he said adding that if the SME Platform is fully launched, the capital market of Bangladesh will reach a new height.
BSEC commissioner Mizanur Rahman said most of the country's small and medium enterprises are profitable business enterprises.
"But many of them do not have an accounting system in place and depend on unskilled clerks and they do not maintain proper books of accounts," he said.
He stressed the need for preparing standard financial statements in compliance with IFRSs and maintaining good governance practice and transparent books of accounts.
"SMEs incur huge business costs just because of their weak management and lack of standard financial statements".
He urged the DSE and SME Foundation to invest in this important capacity-building of the SME sector in Bangladesh.
Dr. Masudur Rahman, chairman of SME Foundation said the SME sector is one of the driving forces of socio-economic growth and development for the economy.