Special body to oversee capital market: Kamal

Staff Correspondent

17 September, 2019 12:00 AM printer

Special body to oversee capital market: Kamal

Finance Minister AHM Mustafa Kamal exchanges views with stock market stakeholders at NEC conference room in the capital on Monday.

A special committee under Bangladesh Securities and Exchange Commission (BSEC) will be formed to oversee anomalies in the country’s capital market with aim to make it more vibrant and dynamic.

“Apart from the greater market oversight, good shares, especially those of public sector companies, will be brought into the share market”, said Finance Minister AHM Mustafa Kamal while briefing journalists after a marathon meeting with the market regulators and other stakeholders at NEC conference room in the capital on Monday.

“We’ll form a committee that will oversee any kind of anomalies in the market round the year so that shares are not overpriced or closed companies’ shares are not traded,” the finance minister said.

 “We all have reached a consensus that we want to improve our capital market. We want to align it with our economy which is now steady,” he noted. “The Prime Minister also talked about the share market development on several occasions as it is directly linked to the middle class and marginalised people,” he added.

At present, main challenges for improving the lackluster capital market are bringing good stocks into the market at fair value and ensuring good governance in the market, Kamal listed. “We’ve to address these challenges and remove the hurdles so that the share market becomes sustainable,” he insisted. 

 He, however, said they would analyse more aspects of the capital market and come up with more concrete decisions to improve the situation. Good shares will be brought at fair prices ensuring good governance, he pointed out. 

“From now on, none can say that there is no justice in the capital market. Anybody found guilty of market manipulation will be punished according to the law. The PM has also announced zero tolerance against such misdeeds,” claimed Kamal.

In reply to a question, he warned that the matter of highly priced share of companies with weak base will seriously be looked into. Replying to another question, he said bringing more public sector companies to the capital market will take some time as their balance sheet will be updated in line with current price valuation.

Apart from the initiative of brining existing companies into the market, new companies are being approved with a condition that they have to come to the share market, he informed.

Bangladesh Bank Governor Fazle Kabir, National Board of Revenue (NBR) Chairman Mosharraf Hossain Bhuiyan, BSEC Chairman Dr. M. Khairul Hossain, Insurance Development and Regulatory Authority of Bangladesh (IDRA) chairman Shafiqur Rahman Patwary, Financial Institution Division Secretary Asadul Islam, Bangladesh Insurance Association president Sheikh Kabir Hossain and Bangladesh Merchant Bankers’ Association chairman Nasir Uddin Chowdhury, among others, were present at the meeting.