Experts at a seminar on Tuesday suggested introducing a provision for a mandatory listing of multinational companies (MNCs) on the stock exchange so as to increase the depth of the capital market.
The Bangladesh Institute of Capital Market (BICM) organised the Research Seminar-05 on a virtual platform on Tuesday, with Dr Mahmuda Akter, executive president of BICM and a professor of Accounting and Information Systems at the University of Dhaka, in the chair.
Dr. Nasir Uddin, Associate Professor of BICM, presented a research paper titled “How to increase the depth of the share market in Bangladesh: The Potential Role of MNCs”.
The research paper highlighted the role of multinational companies in increasing the depth of the share market in Bangladesh. The discussants insisted that the government frame mandatory provision for the listing of MNCs.
According to the research paper, among the multinational companies, only Robi Axiata got listed on the country’s stock market after 2010.
The research paper pointed out that some 12 multinational financial institutions (banks and insurance) and 11 multinational companies are doing business in Bangladesh successfully and they were listed in at least one country in the world but not in Bangladesh.
The research recommended reducing corporate tax, introducing mandatory provision for public listing, and providing other incentives so that the MNCs come forward to get listed, which would ensure a vibrant market.
Bangladesh Securities and Exchange Commission (BSEC) executive director and spokesperson Mohammad Rezaul Karim and secretary-general of Bangladesh Merchant Bankers Association (BMBA) and managing director of BMSL Investment Riyad Matin were present as discussants at the seminar moderated by Wajid Hasan Shah, Director (Studies), BICM.
BSEC spokesperson Mohammad Rezaul Karim said the multinational companies are reluctant to go public as they want to stay independent and avoid regulatory scrutiny.
To have the MNCs listed, the government may offer incentives to them and enact a law requiring MNCs to list their shares on the stock exchanges, he added.
Mohammad Abu Yousuf, joint secretary at the Ministry of Finance, underscored the need for tax incentives to attract multinational companies to go public.
Dr. Suborna Barua, Associate Professor at the University of Dhaka and research fellow at BICM, stressed the need to increase the merchant banks’ efficiency and form marketing teams for approaching multinational companies.