The interim government’s chief advisor, Dr. Muhammad Yunus, has given five instructions to build a sustainable capital market, reform it and restore investor confidence. He has also ordered the bringing in of foreign experts to complete the capital market reforms within three months.
The chief advisor gave these instructions to the concerned at a high-level meeting on the capital market held at his office on Sunday. After the meeting, the chief advisor’s press secretary, Shafiqul Alam, informed reporters about this information.
Shafiqul Alam said, “The chief advisor has asked to bring in a set of foreign experts who will come and initiate or carry out the entire reform within three months.”
The high-level meeting on the capital market was called today in the wake of the continuous price decline and investor agitation.
The meeting was chaired by the Chief Advisor and attended by Financial Advisor Salehuddin Ahmed, Special Assistant to the Chief Advisor in charge of the Ministry of Finance Anisuzzaman Chowdhury, Principal Secretary to the Chief Advisor M Siraj Uddin Mia, Chairman of the capital market regulator BSEC Khandaker Rashed Maqsood, Secretary of the Financial Institutions Department (FID) of the Ministry of Finance Nazma Mobarek, among others.
When asked about the decision of the meeting, BSEC Chairman Khandaker Rashed Maqsood said that the statement of the Press Secretary was his statement.
Press Secretary Shafiqul Alam said that the message of today’s meeting is to quickly carry out meaningful reforms of the entire stock market so that everyone benefits.
Shafiqul Alam said that BSEC Chairman Rashed Maqsood briefed the meeting. He presented the whole picture of the status of the capital market, what kind of reforms have been done in the last 9 months, and where reforms are still underway. Accordingly, a lively discussion took place. Some important decisions have been taken in the light of that discussion.
The press secretary said that the chief advisor gave five main instructions in the meeting, stating that the first instruction is that the companies in which the government of Bangladesh has stakes, or in foreign companies, such as Unilever, can be brought to the IPO very quickly.
Referring to the second instruction, Shafiqul Alam said that there are many private companies in Bangladesh, which have a turnover of 2-3 billion dollars. They have many big ventures, so that they can be brought to the stock market, they have been asked to come and what kind of incentives can be given for that. There are many other companies like Citi Group, Meghna Group, how to bring them, it has been said.
The chief advisor also gave instructions to prevent individuals and groups who create obstacles in the capital market reform. In this context, the Press Secretary said, ‘There are vested interest groups in the stock market. As a result, it is seen that even if reform initiatives are taken, they do not want to work properly or they (vested interest groups) stand against the reforms. He has asked for such reforms so that deep reforms can be carried out in the stock market and such people… who actually have no interest here.
Highlighting the third suggestion of bringing in foreign experts, Shafiqul Alam said, he has asked to bring in a set of experts. Those who can initiate reforms honestly. They will give recommendations, and work will be done accordingly.
Shafiqul Alam added, ‘Those who have this experience, whether from our country or abroad, who have done these works in different stock markets, those who are foreigners and take any stake in this market, have been asked to be brought in.
In the fourth directive, the Chief Advisor has ordered action to be taken against corrupt officials. In this regard, the Press Secretary said, “There is a lot of corruption in the stock market, stock market regulatory bodies or these related offices. Many corrupt people are heard of irregularities. Those who are accused of irregularities have been asked to take action very quickly, so that the message reaches the entire stock market that no kind of irregularities will be tolerated.
Chief Advisor Muhammad Yunus has given instructions to reduce bank dependence and prepare the capital market as the main source of financing.
Press Secretary Shafiqul Alam said, the big companies in Bangladesh take loans from banks. Sometimes they take syndicate loans. Many take loans of one to two thousand taka from banks for setting up big plants. It has been said that this loan can be discouraged and capital can be collected through bonds or some other means through the stock market.
Stating that these initiatives have been taken to restore confidence in the capital market, Shafiqul Alam said, “In the past, three or four people or vested interest groups have benefited and a major robbery has taken place in our stock market before our eyes. We hope that confidence will return to the market in such a way that everyone benefits.”
In response to a question, the press secretary said, no investigation into the capital market has been stopped. Investigations are going on very well against those who have allegations. Check with BSEC.
