‘Cos suffer after takeover by 2nd generation entrepreneurs’

Bangladesh Securities and Exchange Commission (BSEC) Commissioner Dr Rumana Islam said due to the lack of corporate governance, many well-performing companies in Bangladesh suffer once the second-generation entrepreneurs take over them from their predecessors.

She told this while addressing an event organised by the Chittagong Stock Exchange (CSE) marking the ongoing ‘World Investor Week 2022’ on Thursday.

“If corporate governance is not ensured, corporate entities could never take them to the next level. So, monitoring and surveillance are needed to improve the situation and ensure a stronger corporate culture as well as a vibrant capital market in the country,” she stated.

The BSEC commissioner also advised the capital market investors to diversify their stock holdings.

“You should not put all the funds into a single company stock because it may eat up your whole investment in case of any sudden price collapse.”

Addressing another event, Posts and Telecommunications Minister Mustafa Jabbar said to reap the best benefits from the capital market investment it is a must for investors to have technology exposure because data-based technology would dominate the capital market in the coming years.

“Investors would not be able to sustain their investments unless they go for using tech tools for taking decisions regarding the capital market investment,” the minister told this while attending a seminar styled ‘Role of Technology and ESG Analytics in Sustainable Financing’ as the chief guest the same day.

That event was also organised to mark ‘World Investor Week 2022’.

“It is the technology that would help you (investors) decides in which company you need to invest to reap a better output. If you lag in technological utilities, you would have no options to get off the tech-dominated market in the future world,” the minister said.

“We have been working on bandwidth expansion since 2008. Now, as many as 12 crore people are using the internet, and internet services would be expanded to every union-level area of the country by 2023,” Mustafa Jabbar added.

While speaking at the event as a special guest, BSEC Commissioner Dr Mizanur Rahman said the mutual fund could be a smart tool for investors to book better returns.

The securities regulator Bangladesh Securities and Exchange Commission (BSEC) launched the ‘World Investor Week 2022’ Monday to raise awareness among general investors and promote the country’s capital market.

Starting on Monday, the week will continue until October 13.