Capital market has good future, says Salman F Rahman

The condition of the share market will improve as the government has gained the trust of investors, said Salman F Rahman, private industry and investment adviser to Prime Minister Sheikh Hasina. 

"Transactions in the stock exchanges have also increased a lot," he further said while speaking at an online seminar entitled "Post-budget discussion and ways to develop share market" on Saturday – organised by the Bangladesh Merchant Bankers Association (BMBA) and Capital Market Journalist Forum (CMJF) organised the programme.

In a recent report, HSBC called Bangladesh's capital market one of the best-performing markets in the world, he pointed out, adding there are many opportunities in this market. 

The new commission of the stock market regulator has undertaken some good initiatives to develop the market, which helped to regain investors' confidence, he said.

"Yesterday I saw that the Bangladesh Securities and Exchange Commission (BSEC) had withdrawn the lower cap (floor price) of shares. The way the capital market is moving, it has a good future."

He also pointed out the basic problem with the country's capital market was that it did not have any bond market, which is essential for a strong economy. "As it starts, many banks and companies will be able to collect money through bonds," he observed.

He expressed hope that investments in the bond market would increase and the government would be able to collect money from this market if it is well-established.

"Everyone will have more responsibilities once the market is established. Their management capabilities will have to be increased," he said.

If the scope of the market increases, the responsibilities of stockbrokers and stakeholders will increase in the two stock exchanges, he argued. 

Salman F Rahman also stressed the need for increasing manpower and digitalization in the stock exchanges. "Their management capabilities will have to be increased," he further added.

The prime minister's adviser also said there is a rationale behind the proposals made in the proposed national budget to increase the tax gap between listed and non-listed companies, withdraw double tax on dividends, reduce the tax rate of merchant banks, and provide opportunities for undisclosed investment.

"The budget will be passed on the 30th of this month. Some corrections will be made before that. Let's see if we can bring some amendments by this time considering the demands you have made. We will try to include your proposals in the final budget."

Professor Shibli Rubaiyat-ul-Islam, chairman of the BSEC, attended the webinar as special guest. He said, "This year's budget is 'Made in Bangladesh Budget'. This budget is also positive for the capital market."

Claiming that they are working as business-friendly regulators, the BSEC chairman further said the commission is trying to increase the contribution of the capital market to the economic development of the country.

BSEC Commissioner Professor Sheikh Shamsuddin Ahmed said the country's capital market cannot continue as it is. "The market needs to move better. This requires new products and new strategies. The BSEC is working on these issues."

Hassan Imam, president of the AMC Association, said the capital market needs to be given foremost attention.

Putting emphasis on bringing more mutual funds and other equivalent new funds to the market, he said these funds need to be utilised. "And these funds have to be kept out of the purview of taxation for the first 5 years," he said.

BMBA President Sayadur Rahman, DSE Brokers Association of Bangladesh (DBA) President Sharif Anwar Hossain, CSE President Asif Ibrahim, and CMJF President Hasan Imam gave welcome speeches at the online seminar conducted by CMJF General Secretary Monir Hossain.