The government aims to strengthen the stock market: Finance Adviser

News Desk    |    ০৪:১৮ পিএম, ২০২৫-০১-০৭

Some reforms are underway in the stock market. Every reform comes with its own set of challenges. Therefore, the stock market reform process will also involve some temporary difficulties that must be endured. The current interim government's stance is to strengthen the stock market. An economy dependent on bank loans is not sustainable. When industries are built by taking loans from banks, sometimes the money is not even repaid, and that is often tolerated. This is why, in our country, industries are heavily dependent on bank loans.

These remarks were made by the Chief Economic Adviser, Salehuddin Ahmed, while speaking as the chief guest at a discussion organized by the Dhaka Stock Exchange (DSE) about the current state of the stock market. The event took place at the DSE building in Nikunja, Dhaka, on Tuesday morning.

Salehuddin Ahmed said, "The depth of our stock market is very shallow. Good companies are not very keen to come to this market. The owners of these companies think that their children will become directors and their wives will be chairpersons. Whatever profit is made from the business, they will enjoy it themselves. Coming to the stock market means better management, corporate governance, etc. However, many do not want to face questions on these matters, so they are not interested in coming to the market. But the time has come to deepen the market. For this, we need to bring good companies into the market. For that, the government will consider necessary policies and incentives, including tax advantages. Some government companies have already been encouraged to come to the market."

The Economic Advisor also stated, "In our country, there is a major issue with coordination among regulatory agencies. Moreover, there is a lack of collective efforts to work for the country's welfare. The coordination or communication between Bangladesh Bank and the Securities and Exchange Commission (BSEC) has decreased significantly compared to before. For the interest of the stock market, this coordination and communication should be increased, and all stakeholders in the market need to come forward to work together."

Salehuddin Ahmed urged DSE and other market-related parties to take initiatives to increase investment from expatriate Bangladeshis. He mentioned, "In the Indian stock market, there is significant investment from the country's expatriates. Many expatriate Bangladeshis also have the capacity to invest. We need to encourage them to invest, and to do so, we need to make the market attractive."

He further added, "When the stock market index rises, everyone is happy. But when the market goes too high, we need to be cautious. Often, due to the wrong policies of the regulatory authorities, problems arise in the stock market. Ordinary investors suffer as a result. From past experience, I have seen that the market went up significantly when banks invested heavily. Later, when Bangladesh Bank suddenly instructed banks to reduce their investments, the market was adversely affected."

The discussion was chaired by DSE Chairman Mominul Islam, and further speeches were given by the Chairman of the Securities and Exchange Commission (BSEC), Khondkar Rashed Masud. BSEC Commissioners, senior officials, DSE directors, and top officials from brokerage houses were also present at the event.