Sustainable capital market within six months, says BSEC chief

Bangladesh Securities and Exchange Commission (BSEC) Chairman Prof Shibli Rubayat Ul Islam expressed his firm optimism to get a sustainable capital market within the next six months.

“Many evil forces had played with the capital market at various times and no vested quarter would be allowed to play any game anymore with the share market,” said Mr Shibli.

“We’ll provide investment security to small investors. We hope that we’ll get a sustainable capital market within the next six months,” he said.

He was speaking at a seminar titled “The role of capital market to keep dynamic the economy during this COVID-19 pandemic” held at the BSEC Auditorium in the city’s Agargaon.

The seminar was organised marking the inauguration of the online version of daily “Banijjo Pratidin”.

Chaired by its Editor AKM Rashed Shahriar, BSEC Commissioners Dr Sheikh Shamsuddin Ahmed, Prof Dr Md Mizanur Rahman, BD Finance Chairman and Anwar Group Managing Director Monowar Hossain, Bangladesh Merchant Bankers Association (BMBA) President M Sayadur Rahman, Capital Market Journalist Forum (CMJF) President Hasan Imam Rubel, spoke among others at the seminar.

BSEC Executive Director M Rezaul Karim presented the key-note speech.

The BSEC Chairman said the market witnessed ups and downs based on demand and supply adding, “We’re keeping attention so that any vested quarter could not come in the market and thus make the small investors empty handed. So, we hope that we’ll get a sustainable capital market within the next six months”.

He said that they have remained alert so that the associate organisations like the Investment Corporation of Bangladesh (ICB) could play their due role adding that it is now just a matter of time to get a stable and sustainable capital market.

Mr Shibli said it would not take much time in getting a sustainable capital market adding, “I hope you’ll start feeling within three to six months that big players want to play here. But, they won’t be able to repeat it again. We’ll give security to the investors’ money.”

He said the capital market regulator would invite more IPOs (initial public offerings) through which the big businesses would be able to manage long-term financing, which would eventually benefit the IPO winners of the primary market as well as the country’s economic development.

Mr Shibli said, “We have given many IPOs. But I did not see any negative impact. Instead, traders are being provided capital through IPOs. Many jobs are being created. Entrepreneurs are benefiting through this”.

The depth of the market is increasing. People who are doing IPO are also benefiting.

“Overall we see a win-win situation.  If we ever see here (IPO) we should slow down a bit and intervene here, we will do that too”.

He said that initially they had to work on the secondary market, but now they are focusing on the primary market.

Referring to the trading of mobile phone operator Robi which began Thursday, Shibli said that the market transactions crossed Tk 14 billion introducing the transaction of Robi shares. “We hope that the market will head towards a much better position gradually.”

BSEC Commissioner Sheikh Shamsuddin Ahmed said specialised newspapers are reporting well on various sectors of the economy including the capital market.

“We also get a lot of information through these reports. Therefore, the role of journalists in the development of the capital market is very important”.

Commissioner Prof. Md. Mizanur Rahman said, “We want stability in the capital market. The media has a big role to play in this”.

“We are working to ensure the transparency and dynamism of the market. The developing world relies on the media for their development,” he said.

He said investors’ confidence in the capital market has returned. The current growth of the market is the result of their confidence. Everyone needs to work together to overcome the challenges of the market.

The BMBA President Sayadur Rahman said it is difficult to go into productive activities by using savings. So, entrepreneurs depend on banks for money. But many times it becomes difficult for high interest rates. The capital market can be a very reliable place for this.

He said entrepreneurs need to be encouraged to bring them to the capital market. “They will not come unless we encourage them. We have to think about the protection of the entrepreneur too”.

The other speakers at the seminar stressed the need for playing a due role by the media to ensure transparency and stability of the capital market.

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