Speakers at a seminar opined that the stock market could not contribute much to the country's economic growth due to the lack of governance, unfair competition with the banking system and the market debacle in different period.
The remarks were made in the launching of "BICM Research Seminar Series" organised by Bangladesh Institute of Capital Market (BICM) on Thursday.
Dr Mohammed Farashuddin, former governor of Bangladesh Bank and founding vice-chancellor of East-West University was the chief guest at the seminar titled "BICM Research Seminar Series."
After analysing the data from 1981 to 2019, the research paper, presented in the seminar, showed that the financing provided through initial public offerings (IPO) in the Bangladesh stock market over the past 39 years does not have much impact on the economic growth in the long run. Professor Shaikh Shamsuddin Ahmed, commissioner of Bangladesh Securities and Exchange Commission (BSEC) inaugurated the seminar series presided over by Dr Mahmuda Akter, executive president of BICM and a Professor of Accounting & Information Systems at the University of Dhaka, says a press release.
After the inaugural session, "BICM Research Seminar -1" was held where Ms Mahmuda presented a research paper titled "The effects of IPO financing and monetary policy on economic growth in Bangladesh: A dynamic assessment". Dr Suborna Barua, Associate Professor, Department of International Business at the University of Dhaka, moderated the programme. Barua is also the associate writer of the research paper. BSEC Commissioner Prof Shaikh Shamsuddin Ahmed said the present commission is constantly working to revive the stock market by revising the corporate governance code, using modern technology, and finding new ways of financing.
He noted that the rules of the SME board have already been made and steps have been taken to finance even non-government organisations in future.
Bangladesh Institute of Capital Market (BICM) is the national institution for imparting "practical capital market education and training".
