Merchant bankers ask for more incentives to bring good firms to the capital market
There are 63 merchant banks in the country, but only 10/12 companies are being listed on the capital market every year
Leaders of the Bangladesh Merchant Bankers Association (BMBA) have called for increasing incentives to bring good companies of major industrial groups to the capital market.
"The fact stands that a company has to spend more on compliance for getting listed on the capital market than the discount it gets on corporate tax. Again, many companies belonging to large groups are easily getting loans from banks, due to which they are not coming to the capital market," said Sayadur Rahman, president of BMBA.
"In such a situation, incentives need to be increased to attract good companies to the capital market," he said at a courtesy call and a discussion with the newly-elected committee of the Capital Market Journalists Forum (CMJF) at Fars Hotel in the capital on Thursday.
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Merchant banks manage the issues of companies interested in raising capital from the capital market.
There are 63 merchant banks in the country, but only 10/12 companies are being listed on the capital market every year.
There are also questions about the quality of initial public offerings (IPOs) merchant banks bring to the market.
The BMBA president made the demand in response to a question as to why good companies are not coming to the capital market.
He said that not a single company of the big industrial groups like Citigroup, Jamuna, Akij, Abul Khair, Partex, and others have entered the capital market of the country.
"These groups are not interested in entering the capital market as they can easily get loans from banks," he added.
Ziaur Rahman, newly-elected president of the CMJF, said new and good companies need to be listed to increase the contribution of the capital market to the economy.
"Companies will create new jobs through business expansion with funds. The amount of tax in the government treasury will also increase," he added.
He said, in bringing a company to the market, emphasis must be put on its quality.
"We need to keep watch so that unscrupulous entrepreneurs cannot deceive general investors by manipulating accounts and bringing weak companies into the market," added the CMJF president.
CMJF General Secretary Abu Ali conducted the courtesy call and discussion programme.
Among others, leaders and members of the Merchant Bankers Association and members of the CMJF's new and outgoing committees were present.
