Unscrupulous traders cannot play with the capital market like during the two crushing blows between 1996 and 2010 as the government has undertaken massive measures to thwart such moves.
The capital market usually witnesses upward and downward trends, but nobody can forcibly lower or raise the market in a normal way.
Shibli Rubayat-Ul-Islam, chairman of Bangladesh Securities and Exchange Commission (BSEC), came up with the statement while speaking as a chief guest at the maiden ‘Economic Reporters’ Forum (ERF) Dialogue on Business and Economy’ at the ERF office in Dhaka on Saturday.
“We are expecting a major change on our stock markets within the next two years as we have taken some bold steps for continuing the positive trend on the stock markets,” he said.
For instance, the BSEC has been working for revival of the bond transactions on the markets and also to enlist new kinds of bonds from home and abroad. He mentioned the listing of the Sukuk bond.
Moreover, the BSEC is going to hold roadshows in Switzerland and Germany in June for attracting more bonds on the stock markets in Bangladesh, he informed.
The BSEC has also been receiving responses from other major global business districts like Australia, Toronto and in the UK for holding the road shows in those areas for investing in bonds on the stock markets, he added.
Replying to a query from a journalist, Shibli Rubayat-Ul-Islam also said the stock markets ‘ IT would be strengthened soon to enable them for transaction of big amount of bond as currently, the IT system of the stock exchanges is not much capable to handle the transactions of big amountd of money of bonds.
Regarding the forgery in the audit report by a section of listed companies on the markets, the BSEC chairman said the BSEC has been working with other regulatory bodies like National Board of Revenue (NBR), Financial Reporting Council and other bodies concerned for agreeing on accepting the unified audit reports. Many companies publish forged audit reports in connivance with a section of unscrupulous audit companies which give false earning per share, he said.
The BSEC chairman said currently the government allows hedge funds for one year, but it should be more than one year so that the local companies can purchase commodities at cheaper rates to make a good business with global movement of price barometer.
Regarding the role of stock market on generating capital for industrialization , he said the bourses should be the ground for long term financing instead of banks, as the banks cannot carry the loan for long time although such kind of financing has been taking place in the country for the absence of strong financing by the bourses.
If any bank finances for a long time, like for 10 years, it is viable for this bank, it can finance for at least two to three years. But in Bangladesh the banks are financing for 25 years or more, he said.
Shibli Rubayat-Ul-Islam also said the BSEC has been investigating a claim of allegation of anomaly of the Padma Bank, and the stock market regulatory body will take action as per the law if it is found to be proved after the investigation. However, the BSEC chairman did not disclose details about the allegation.
Bangladesh Securities and Exchange Commission (BSEC) has targeted at least six big industrial local conglomerates to bring on the stock markets to remove the crisis of quality shares on the markets, Shibli said.
The annual turnover of those six companies is above $2.5billion. And of the six companies, one is a nearly $4billion annual turnover company, the chairman said.
“The company which has the $4billion turnover has already contacted the BSEC for offloading its share on the stock market,” he added.
“Many people think that Bangladesh does not have such big companies. But, it is true now as there are so many companies in Bangladesh which have $1billion turnover in a year, as with the economic growth of the country, the companies have also grown over the years which proves the country’s financial strength,” he mentioned.
However, the chairman declined to mention the names of those companies. Currently, the stock market size of the country is Tk5,00,000 crore which was Tk3,50,000crore even a few months ago which mainly indicates a positive trend of the markets, the BSEC chairman also said.
Sharmeen Rinvy, president of the ERF chaired the discussion and SM Rashidul Islam, ERF general secretary moderated the event.
