Photo : Messenger
The president of the DSE Brokers Association of Bangladesh (DBA) and director of BRAC EPL Stock Brokerage Limited Saiful Islam commented on Thursday that the Dhaka Stock Exchange (DSE) has now turned into a post office.
He said all capital markets in the world act as primary regulators, but the Bangladesh Stock Exchange has acted as a post office, exchanging letters with the Bangladesh Securities and Exchange Commission (BSEC). All the stock exchanges around the world allow initial public offerings (IPOs), while the DSE could not recommend any. Even in the last 15 years, the capital market has not brought good companies to the market.
He said this in a programme titled Meet and Greet Program of the DBA Executive Committee with members of the Capital Market Journalists Forum (CMJF) at DSE Tower, Nikunj, in the capital. CMJF President Golam Samdani Bhuiyan, General Secretary Abu Ali, and the leaders of both organisations were also present.
Saiful Islam said that since 2010, the market has not gained momentum. The improvement of the country’s economy in the last 15 years has not had any effect on the capital market. Although the country’s economy is progressing, the capital market is lagging. In addition, the process of new companies entering the market is complicated. Reconsidering these issues could enrich the capital market.
He also said that the current situation of the country’s capital market is lagging far behind, and one of the reasons for the decrease in market transactions is the floor price. Due to the imposition of a floor price (minimum price), transactions in the capital market of the country have decreased significantly in the last one and a half years.
“We have all suffered in last one year and a half. It has been almost 20 months that no transaction can be done here. There are about 250 brokerage houses and about 70 TREC-holders – in all about 320 companies are running. As many as 80 percent of companies are not able to raise even their operating costs in this torrid time. Let the market run like a market.
He said our demutualization (separation of management from stock exchange ownership) took place in 2013, which has hurt us, but we still accept it. After 10 years, it is time to review what we believe (demutualization). How realistic was the law that was passed, how market-friendly, and how did the market develop?
The DBA president said that it is time to review the issue of the IPO now. Problem-solving is not possible without finding specifics. If you look at the last three years, it is evident that IPOs have decreased in large numbers. The importance of this matter is that if the right problem is not identified and solved, then the market cannot improve.
Managing Director of DSE ATM Tariquzzaman, former President of DBA Mostak Ahmed Sadiq, Shakil Rizvi, Sharif Anwar Hussain Dilip, and Richard de Rozario spoke on the occasion. Bangladesh Merchant Bankers Association (BMBA) president Majeda Khatun, former president Sayadur Rahman, former DSE director Minhaj Mannan Emon, and leaders of DBA and CMJF were also present.
Messenger/Sajib
