Prime Minister's Advisor to Economic Affairs Dr Mashiur Rahman yesterday said the volatility in the stock market could be reduced is transparency and accountability in the market is assured.
He said this at a seminar entitled "Capital Market Reforms in Bangladesh: Demand and Supply Side Constraints” at a city hotel on Saturday.
Asif Ibrahim, president of the Dhaka Chamber of Commerce and Industries (DCCI) presided the seminar organised by DCCI.
Dr Mashiur Rahman suggested the bourses and the brokerage houses for make the investors aware about the risk in share business. Commenting on the recent market crash he said: “Lack of investor’s knowledge and awareness on the market caused volatility in the market.”
The ultimate result will not be good if the Bangladesh Bank increases money supply to the stock market, he added.
"The country's economic growth cannot be achieved if we do not use the stock market for long term investment,” said the newly appointed SEC chairman M Khairul Hossain.
“If we do not formulate and amend laws on initial public offering (IPO), preferential shares and placement shares will create severe problems in brining more companies to the market which would create mismatch between demand and the supply.
He also stressed on efforts to build investors’ confidence in order to stabilise the market.
He, however, blamed the existing laws and lack on awareness for the recent volatility and unrest in the market. He vowed to make SEC accountable, transparent to restore the past glory of the regulatory body through proper implementation of regulations on the basis of morality.
“If the government wants to enhance gross domestic products (GDP) from the existing 6 percent to 9 percent, it has to take move to utilise the stock market,” said Dhaka Stock Exchange president Shakil Rizvi. He also urged the government to provide tax incentives to attract investors in industrialisation.
He requested the regulatory body to amend company act as it is not time befitting.
Meanwhile, Fakhor Uddin Ali Ahmed, president of Chittagong Stock Exchange emphasised the need for increasing the supply of stocks to meet the rising demand so that no vested group could manipulate again.
Bourses leaders also requested the stakeholders at the policy level to be more cautious in making comments on the share market as it is very sensitive.
They also made a set of recommendations including amendment of regulations for the betterment of the stock market.
Salahuddin Ahmed Khan, professor of Department of Finance of the Dhaka University and former CEO of the DSE presented the keynote on 'Demand Side' at the seminar.
DCCI president said the programme was arranged to address the existing problems in the stock market through necessary reforms. Besides, recommendations on restructuring the regulatory framework could be formulated for ensuring a realistic, effective and stable capital market so that both supply side and demand side constraints could be addressed effectively, he added.
He hoped that the country would become 30th largest economy in the globe by 2030. He also said: “A robust stock market, which is the barometer of a thriving industrial economy, reflects the interests of all stake holders, particularly the investors.
Dr Hossain Zillur Rahman, former advisor to the caretaker government, Ahsanul Islam Titu, DSE vice president, Dr Mahmood Osman Imam, Department of Finance of Dhaka University, Adeeb H Khan, Dr Khandker Golam Moazem research fellow CDP were present at the seminar as designated discussant.
He said this at a seminar entitled "Capital Market Reforms in Bangladesh: Demand and Supply Side Constraints” at a city hotel on Saturday.
Asif Ibrahim, president of the Dhaka Chamber of Commerce and Industries (DCCI) presided the seminar organised by DCCI.
Dr Mashiur Rahman suggested the bourses and the brokerage houses for make the investors aware about the risk in share business. Commenting on the recent market crash he said: “Lack of investor’s knowledge and awareness on the market caused volatility in the market.”
The ultimate result will not be good if the Bangladesh Bank increases money supply to the stock market, he added.
"The country's economic growth cannot be achieved if we do not use the stock market for long term investment,” said the newly appointed SEC chairman M Khairul Hossain.
“If we do not formulate and amend laws on initial public offering (IPO), preferential shares and placement shares will create severe problems in brining more companies to the market which would create mismatch between demand and the supply.
He also stressed on efforts to build investors’ confidence in order to stabilise the market.
He, however, blamed the existing laws and lack on awareness for the recent volatility and unrest in the market. He vowed to make SEC accountable, transparent to restore the past glory of the regulatory body through proper implementation of regulations on the basis of morality.
“If the government wants to enhance gross domestic products (GDP) from the existing 6 percent to 9 percent, it has to take move to utilise the stock market,” said Dhaka Stock Exchange president Shakil Rizvi. He also urged the government to provide tax incentives to attract investors in industrialisation.
He requested the regulatory body to amend company act as it is not time befitting.
Meanwhile, Fakhor Uddin Ali Ahmed, president of Chittagong Stock Exchange emphasised the need for increasing the supply of stocks to meet the rising demand so that no vested group could manipulate again.
Bourses leaders also requested the stakeholders at the policy level to be more cautious in making comments on the share market as it is very sensitive.
They also made a set of recommendations including amendment of regulations for the betterment of the stock market.
Salahuddin Ahmed Khan, professor of Department of Finance of the Dhaka University and former CEO of the DSE presented the keynote on 'Demand Side' at the seminar.
DCCI president said the programme was arranged to address the existing problems in the stock market through necessary reforms. Besides, recommendations on restructuring the regulatory framework could be formulated for ensuring a realistic, effective and stable capital market so that both supply side and demand side constraints could be addressed effectively, he added.
He hoped that the country would become 30th largest economy in the globe by 2030. He also said: “A robust stock market, which is the barometer of a thriving industrial economy, reflects the interests of all stake holders, particularly the investors.
Dr Hossain Zillur Rahman, former advisor to the caretaker government, Ahsanul Islam Titu, DSE vice president, Dr Mahmood Osman Imam, Department of Finance of Dhaka University, Adeeb H Khan, Dr Khandker Golam Moazem research fellow CDP were present at the seminar as designated discussant.
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