IMF for automation, capacity building of capital market

The International Monetary Fund (IMF) has put emphasis on full-fledged automation and suggested improving the capacity of the capital market in Bangladesh.

The IMF made the recommendation during a meeting with a delegation of the Bangladesh Securities and Exchange Commission (BSEC) on Monday at Agargaon in Dhaka.

Rahul Anand, the Mission Chief for Bangladesh, Asia and Pacific Department, led the IMF delegation at the meeting where BSEC Chairman Prof Shibli Rubayat-Ul Islam was present.

Following the meeting, BSEC Executive Director and Spokesperson Mohammad Rezaul Karim told the media that it was a routine meeting and the IMF discussed the overall infrastructure of the country’s capital market. 

Karim said during the scheduled meeting, the IMF team suggested product diversification in the stock market to ensure the involvement of people from all parts of society.

They want to know the details about the commodity exchange market, real estate and other sectors’ enrollment in the share markets, he said. 

Karim said the IMF would support both technological upgradation and human resource development in the capital market so that the market can act while maintaining global standard.

He also said there was no opportunity to talk about the floor price issue as the policy was taken to develop the market and the IMF didn’t recommend such issues.

Spokesperson of the BSEC said they were very satisfied with the Capital Market Stabilization Fund. Saying it is a good initiative and they thanked the commission as it would play a role in market development.

They will cooperate in bringing environmental friendly bonds to the market. They want to cooperate to increase the demand and supply of such bonds, he said. 

The delegation of the Washington-based global lender started visiting Bangladesh on 26 October to discuss and realize the economic situation as the country sought a $4.5 billion loan as budgetary support.

Earlier, the IMF team met for discussion with the Finance Ministry, Bangladesh Bank, NBR, Bangladesh Bureau of Statistics, Power Division, Bangladesh Energy Regulatory Commission, and Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

A 10-member team of the Manila-based lender is in Dhaka now on a 15-day tour to work out the conditions for the prospective loan.

The BSEC on 28 July imposed floor prices on all companies again to prevent the share prices of the companies from falling beyond a certain level.