'Long-term financing should be ensured through capital mkt'

The country's capital market has considerable opportunities to overcome the impacts of the COVID-19.

In that case, potential policy measures will have to be adopted to increase investors' participations in the country's capital market.

The newly-appointed commissioner of the Bangladesh Securities and Exchange Commission (BSEC) professor Dr Sheikh Shamsuddin Ahmed said this on Thursday.

"Many challenges have many opportunities. So, we have many opportunities to overcome the capital market's crisis observed after outbreak of the deadly virus," Prof Ahmed said.

For example, the revised interest rate of the banks has created an opportunity that should be picked up for the capital market, said Prof. Ahmed.

"Investors' participation will increase in the capital market if some policy measures are adopted to introduce some new products," he said.

He said all dimensions created by the banking sector should also be utilised to draw investors' attention to the capital market.

"No doubt, potential policy measures will be adopted for the long term benefit of the capital market."

While speaking on equity market, the BSEC commissioner Prof Ahmed stressed on quality IPOs (initial public offerings) along with assessing the criteria set for the regulatory approval.

"A company goes public giving a lot of information which should be designed and analysed. This is one thing and there are other things of ensuring quality IPOs," said Prof Ahmed.

He said the country's banking sector so far has done its job beyond its desired role in terms of long-term financing.

"Long-term financing is not the job of banks. Their job is to meet temporary needs of the depositors, among others," the BSEC commissioner said.

He said the long-term financing should be ensured through the country's capital market considering overall interest of the economy.

"Our bond market lags far behind compared to that of other countries. We know the problems which will be removed to make the bond market popular," the BSEC commissioner Prof Ahmed said.

He has also stressed on fulfilling the manpower shortage at the BSEC to enhance its capacity.

Another newly-appointed BSEC commissioner Professor Dr Mizanur Rahman said the securities regulator will prioritise the interest of investors to restore their confidence in the country's capital market.

"Investors' confidence will have to be restored for long term development of the capital market," Rahman said.

He said good governance and expertise of the market operators will also have to be enhanced for long term development of the capital market.

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