The country's capital market needs listing of more companies having good fundamentals along with introducing new products to attract investors from different level of income.
Dr. Mashiur Rahman, the economic affairs adviser to the Prime Minister, said this on Wednesday at a seminar held at Bangladesh Shilpakala Academy to mark the World Investor Week 2017.
He said the retired persons prefer making investments in saving certificates and instruments of fixed income as the number of listed companies having good fundamentals is yet to be up to the mark.
"Under such a situation, more companies having good fundamentals should be brought to the capital market," Mashiur said.
He said awareness can be created through fair, but the investors' confidence to the capital market depends on actual delivery of benefits to them.
"Investments are required to enhance the economic growth and more investments should be made in the private sectors." Mashiur said, adding that there is no alternative of capital market to meet up the needs of investments.
The chairman of the securities regulator Professor M Khairul Hosain said they have brought enough reforms in the capital market after 2010-11 stock market debacles.
"But the investors' confidence to the capital market has not reached to a satisfactory level due to their shortage of financial literacy," Professor Khairul said while speaking on the importance of conducting financial literacy programme across the country.
In association with both the stock exchanges, associations of stock brokers, merchant bankers and asset management companies, the Bangladesh Securities and Exchange Commission (BSEC) is observing World Investor Week 2017 opened on October 2 to create awareness on investment among the general investors. The week will be concluded on October 8
To observe the week, the BSEC has arranged different meetings, seminars, workshops and investors' education fair targeting general investors, students of universities, stakeholders of the capital market and different professional bodies.
Meanwhile, speakers at a seminar in Chittagong Independent University said lack of investment literacy is one of the causes of disasters of the capital market and business loss of the investors.
The seminar was organised jointly by the CIU and CSE (Chittagong Stock Exchange) on Financial Literacy and Investors Protection Tuesday on the occasion of the World Investors Week for creating awareness and extension of the Protection Network by International Organisation of Securities Commissions.
The week-long programme of the global capital market regulatory organisation started on October 2 and will continue till October 8.
Chief Revenue Officer (CRO) of the CSE Md Shamsur Rahman and deputy general manager (Trek Holder Affairs) of the CSE Md Nahidul Islam Khan presented two keynote papers in the seminar.
Vice Chancellor of the Chittagong Independent University Professor Dr Mahfuzul Huq Chowdhury addressed the seminar as chief guest while Advisor of the CIU Business Faculty Professor Dr Ayub Islam spoke as special guest.
Managing Director of the Chittagong Stock Exchange M Saifur Rahman Majumder delivered his welcome address.
The CSE MD said the investors' week organized by International Organisation of Securities Commissions (IOSC) is being observed for the first time in 81 countries of the world, aimed at giving protection to the investors in the capital market and for the awareness of the same so that they can learn more about the market and save their capital.
“The seminar has been organized only for the learners because everybody investing in the capital market should have more literacy in the field”, he said adding the investors must know about the very investment framework and the rules and regulations that guide the market.
Earning knowledge from such programmes the investors will be able to explain investment atmosphere and fix up their suitable portfolio because all kinds of portfolio may not fit with investment of all, the CSE managing director said.
He added that the Bangladesh Securities and Exchange Commission and (BSEC) and the Chittagong Stock Exchange (CSE) are working to extend literacy network and awareness programmes on the market continuously.
CIU vice chancellor said the stock exchanges in Bangladesh are still in the booming stage but they have many challenges ahead. The bourses can open research and development cell (research department) to face off the challenges. In this venture teachers and students of the universities can assist the bourses.
CIU Business Faculty advisor Dr Ayub Islam observed that the capital market and money market are two important organs of the education sector. The seminar is also aimed at the welfare of the learners, who will one day play role of teachers in the field.
He said that the lack of literacy of the concerned investors is one of the major causes of their financial loss in the capital market investment and a class of the greedy people get chance to manipulate the market.
AGM (training and development) of the CSE Arif Ahmed, head of Finance of the CIU Dr Syed Manjur Quader, head of Marketing Dr Md Nayeem Abdullah, assistant professor Quamruddin Parvez, assistant professor Dr Imon Kalyan Chowdhury and lecturer Sayeed Hassan, among others, were present.