The government is going to take tougher actions against the capital market manipulators and rumor mongers as it is passing through a critical time for ongoing bearish trend. Finance Minister AHM Mustafa Kamal made the statement to reporters after a meeting with the Dhaka Stock Exchange Board of Directors and higher authority of Bangladesh Securities and Exchange Commission (BSEC) at the ERD Conference room in the city’s Agargaon area on Thursday.
Earlier in the morning, Dhaka Stock Exchange (DSE) leaders placed an 11-point recommendation to Finance Minister AHM Mustafa Kamal to overcome the ongoing capital market crisis. DSE Chairman Prof Dr Abul Hashem placed these recommendations. The finance minister said the capital market could not be rebounded as it became a rumor-prone market. “Various government agencies will take action against those who are spreading the rumors in the market,” he said adding that, the regulator, BSEC, has been instructed in this regard.
He said in order to facilitate the capital market for making a turn around and to stop these rumours, the existing laws would be much more compliant and would be fully enforced. Answering to a question, he said the concerned agencies would be able to play their due roles in the market when the concerned laws would be strengthened. “If there is any loophole in the laws, then it won’t work. I’ve asked the chairman of the BSEC to look into this matter. The concerned laws would be made cent percent compliant,” he added.
Asked about the various demands raised by the DSE, Kamal said the DSE authorities have requested me to reduce the rate of tax. “I’ve assured them of considering this demand,” he added. Referring to the demand from the DSE to bring some good shares in the capital market, the finance minister said, “I’ve assured them, but couldn’t give a specific timeframe when it will be possible. We’ll bring the shares of those state owned enterprises first which have good fundamentals.”
Kamal also underscored the need for addressing the legal weaknesses of the Bangladesh Securities and Exchange Commission (BSEC) in a bid to bring much more compliance into the operations of the capital market regulator. He said, “The government will take initiatives to bring profitable public companies into the capital market to build strong financial base of the market.”
Kamal said, “We will emphasis to bring good companies in the capital market to create solid fundamentals of the market.”
He agreed to consider reducing taxes in listed companies as much as possible. He assured the stakeholders of the capital market of meeting their demands that were placed at the meeting in the battement of the market.
BSEC chairman M Khairul Hossain, BSEC commissioners and members of the DSE board of directors were also present at the meeting.
The 11-point recommendations placed by DSE’s board of directors include long-term financing arrangements from capital markets, increasing the supply of money in the market, bringing shares of the state-owned company to the market, activation of T-Bondtransactions as soon as possible, encouraging multinational companies to be listed in the capital market, quick settlement of Grameenphone and BTRC conflicts, reduction in tax on DSE and capital market transactions, ensuring transparency of audit reports, increasing the ability of ICBs and other companies to develop capital markets in a public-private partnership and formation of a high power coordination committee.
