Bangladesh Securities and Exchange Commission (BSEC) will not allow unscrupulous people to come to the capital market for investors’ securities.
Professor Shibli Rubayat-Ul-Islam, Chairman of BSEC, made the remark while speaking as the special guest at a conference titled “Capital Market of Bangladesh Prospects and Opportunities for Tech Startup and Growth Stage Companies” at the Dhaka Stock Exchange (DSE) building in Nikunja in the capital on Thursday
Zunaid Ahmed Palak, State Minister for Information and Communication Technology (ICT), was present as the chief guest in the conference.
If startup companies want to come to the capital market, they have to leave 10 percent of the shares, Rubayat mentioned.
Besides, startup companies with good accounts and growth will be helped in financing from the capital market even if there is a loophole in the law, he added.
“In this case only eligible will get opportunity. I will not spoil the environment by giving opportunities to the incompetent. However, the companies have to divest at least 10 percent of the shares,” he said.
The BSEC chairman said, “If the country benefits by cooperating with startup companies, then why not we extend our cooperation to them. However, such companies must issue at least 10 percent shares if they want to come to the capital market. If not, I will not give them the opportunity to withdraw money from the capital market.”
He also said that formation of new boards for startup companies would be considered if necessary, he mentioned.
Mr Islam said, “Like other companies, startup entrepreneurs also have to keep collateral or mortgage to take loan from banks. But startup companies are the new generation of people. Their talent and innovative ideas contribute to the national interest.”
“We have to consider the interests of the investors as well as the company,” he added.
The startup companies will become bigger at some point, he said, adding that they will then go to the SME Board. From there they will go to the main board. But after how long this transfer will happen, will depend on the performance of the companies.”
Chairman of Dhaka Stock Exchange (DSE) Yunusur Rahman and BSEC Commissioner Professor Dr Shaikh Shamsuddin Ahmed also spoke on the occasion.
Earlier, DSE Managing Director and Startup Bangladesh Limited Managing Director signed an agreement to be listed