FE Report
A number of capital market stakeholders and experts Saturday urged the government to make the next national budget capital market friendly.
"The government should take into account the present situation of the stock market while formulating the national budget for the fiscal 2011-12," Chitagong Stock Exchange (CSE) President Fakhor Uddin Ali Ahmed said while inaugurating a workshop organised by the CSE at its Dhaka office.
He said if tax identification number (TIN) is made mandatory for opening BO accounts it would scare away fresh investors.
"We hope the government will not include any harsh measures in the upcoming budget, for the sake of the growth of the market."
"We hope the upcoming budget will not frustrate the investors," he added.
Echoing the CSE president, Professor Abu Ahmed of Dhaka University said the government should announce a capital market friendly budget to help return of the investors to the market.
"Some people, who act from behind the screen, may want to create such an environment, encouraging the government to disown the market," Mr Ahmed said.
Ahmed blamed the monetary policy of the central bank for the ongoing liquidity crunch.
"The monetary policy is the main reason behind increasing interest rate, which reduces flow of money in the name of checking inflation rate."
He said the co-operation between the central bank and the securities regulator is essential to bring back stability in the stock market.
Former chief executive officer of the Dhaka Stock Exchange (DSE) Professor Salauddin Ahmed Khan said prices of the listed securities should increase on the basis of sound information, like - reduction of the companies' risk factor and their projected growth etc.
"But unfortunately share prices increase on the basis of rumours and speculations," Mr Khan said.
A number of capital market stakeholders and experts Saturday urged the government to make the next national budget capital market friendly.
"The government should take into account the present situation of the stock market while formulating the national budget for the fiscal 2011-12," Chitagong Stock Exchange (CSE) President Fakhor Uddin Ali Ahmed said while inaugurating a workshop organised by the CSE at its Dhaka office.
He said if tax identification number (TIN) is made mandatory for opening BO accounts it would scare away fresh investors.
"We hope the government will not include any harsh measures in the upcoming budget, for the sake of the growth of the market."
"We hope the upcoming budget will not frustrate the investors," he added.
Echoing the CSE president, Professor Abu Ahmed of Dhaka University said the government should announce a capital market friendly budget to help return of the investors to the market.
"Some people, who act from behind the screen, may want to create such an environment, encouraging the government to disown the market," Mr Ahmed said.
Ahmed blamed the monetary policy of the central bank for the ongoing liquidity crunch.
"The monetary policy is the main reason behind increasing interest rate, which reduces flow of money in the name of checking inflation rate."
He said the co-operation between the central bank and the securities regulator is essential to bring back stability in the stock market.
Former chief executive officer of the Dhaka Stock Exchange (DSE) Professor Salauddin Ahmed Khan said prices of the listed securities should increase on the basis of sound information, like - reduction of the companies' risk factor and their projected growth etc.
"But unfortunately share prices increase on the basis of rumours and speculations," Mr Khan said.
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