Saturday, April 27, 2024
Dhaka Stock Exchange (DSE) chairman Hafiz Muhammad Hasan Babu on Monday said they do not want to embarrass the National Board of Revenue (NBR) and the Bangladesh Bank (BB) on capital market issues before the announcement of every national budget.
“Every year, we sit with them, but our meetings are scheduled in such a time when they do not have anything to do in the budget for us,” he added.
Addressing as the chief guest, Babu made these remarks during a coordination meeting with merchant bankers on the listing of new IPOs.
DSE chairman said, “In the current situation, we should create a multiversity body which will prepare instructions on how to enrich the market through a proper review of the market.”
“I personally think the market cannot be improved if we only solve our own problems. Keeping the whole market in view, making a proper guideline and solving the relevant laws are required for the market development,” he stated.
“Quality IPOs have not entered in the capital market in the past few years despite there are a large number of merchant banks in Bangladesh,” he said adding that there are currently 68 merchant banks in Bangladesh but the ratio of bringing new IPOs is lower than those in the peer countries.
Attending the meeting as the chief guest, the Bangladesh Merchant Bankers Association (BMBA) President Sayadur Rahman said, “Before the placement of every budget in the parliament, market stakeholders including the DSE, CSE are called together for a meeting and we present our proposals regarding the market.”
“But in reality, our demands are disregarded almost in all budgets.”
“The two government entities are very important for the capital market. One of them is the NBR and the other one is the central bank. Therefore, we have to organise meeting with them regularly to press home our demands in the budget.”
“Companies now depend on banks. It takes one and a half years for companies to withdraw money from the capital market but it takes two or three months to get a loan from the bank.”
“In this case, if it is not possible to provide necessary policy supports to those who want to get listed, the number of new companies in the capital market cannot be increased,” Sayadur Rahman said.
DSE’s Chief Regulatory Officer, Khairul Bashar Abu Taher Mohammad; LankaBangla Investments Limited CEO, Iftekhar Alam; ICB Asset Management Company Ltd’s General Manager and CEO, Mazeda Khatun; IDLC Investments Ltd’s Managing Director, Reza Ahmad, among others, spoke at the event.
