‘We see a good future of our capital market’

Bangladesh’s economy is growing day by day. Its capital market is also growing at the same time. We see a good future for the market as our capital market progresses. New products are coming here regularly. We think our capital market will be better in the future, Chairman of Chittagong Stock Exchange (CSE), Asif Ibrahim told The Business Post’s Niaz Mahmud in an interview

Asif Ibrahim is a former president of the Dhaka Chamber of Commerce and Industry (DCCI) and founder chairman of the Business Initiative Leading Development (BUILD).

The Business Post: How do you evaluate the current state of Bangladesh’s capital market?

Asif Ibrahim: Bangladesh’s economy is growing every day. There is a huge opportunity to explore business. Its capital market is also growing at the same time. We see a good future for the market as our capital market progresses. Lately, we have seen some growing confidence in the market with the new leadership of the Bangladesh Securities and Exchange Commission (BSEC). On the other hand, new products are coming here. Islamic bond Sukuk has already been approved by the commission. So, above all, we think our capital market will be better in the future.

TBP: How far have you progressed in determining a strategic partner for CSE?

Asif: We have offered different stock exchanges and investment companies around the world to become strategic investors by taking shares of CSE. We are in touch with the potential strategic investors through meetings and other communication channels.

TBP: What benefits are we enjoying for eight years after the demutualization of the stock exchanges?

Asif: The main consequences of the demutualization of the stock exchanges are as follows: Conversion from Not-for-Profit status to For-Profit organization, separation of management

from the ownership and separation of shareholding and TREC (Trading Right Entitlement Certificate) holding. Because of the above consequences of demutualization, our market has become more transparent, efficient, and sustainable.

We have become partner exchange of the United Nations Sustainable Stock Exchanges Initiative on January 31, 2017. Brokerage houses can now open digital both at any place across the country. Some brokerage houses have already opened their digital booth abroad. Moreover, a strong bond market is also going to be operational very soon. For all of these, local and international investors are now keeping their confidence in our market. 

TBP: Do you think this will be enough to increase foreign investment in our stock market?

Asif: We think this should be enough to increase foreign investment in our stock market. Majority of the things and environment which the foreign investors expect to invest in other countries are available in our stock market now.

TBP: What initiative can be taken to increase the capital market’s contribution to our GDP?

Asif: BSEC has already taken many initiatives to restructure and reform the market. It has introduced financial literacy programmes for the investors. The commission established two dedicated institutions to educate the general investors. One is Bangladesh Institute of Capital Market (BICM) and another is Bangladesh Academy for Securities Market (BASM).

TBP: How Covid-19 affects Bangladesh’s stock market?

Asif: Our stock market remained closed for two months in the year 2020 due to the Covid-19 pandemic. In the meantime, we have taken all the necessary measures in terms of regulations and operations for the digitalization of our market. Now we can keep our market open in any extreme situation. 

TBP: What can we do to strengthen the capital market?

Asif: More multinational and state-owned companies should be listed to strengthen the capital market. Tax policy for the listed companies should also be more attractive to attract foreign brokerage houses to trade in our market.

Capital market should be included as a subject in our college/university curriculum. The rules and regulations related to this market should be designed more investor-friendly. The skill and competence of the officers of the market should be developed to international standard. They should be given adequate and proper training regularly at home and abroad as a continuous process.