Prime Minister Sheikh Hasina today said her
government has been working to build a strong and stable capital market
giving necessary financial education and all possible protection to investors
as she opened a regional seminar on investors’ promotion.
“The present government is working on creating a strong Capital Market,
which will meet long-term financing needs to the investors”, she said while
inaugurating the four-day “Regional Seminar on Financial Literacy and
Investor Protection” in a city hotel here.
The seminar is being jointly organized by Bangladesh Securities and
Exchange Commission (BSEC) and the Asian Development Bank (ADB).
“Our government is continuously extending its all out cooperation through
providing policy support, law amendments and infrastructure building for
creating a stronger capital market,” the premier said.
The prime minister also vowed to ensure accountability and good governance
to eradicate corruptions at different levels in the capital market.
Stressing the need for increasing the participation of retail investors in
the capital market, she said “Our Capital Market is still being driven by
retail investors. To make Capital Market vibrant, we need to increase the
participation of institutional investors there.”
The premier also said “A country-wide program on investment literacy has
already been launched which remains continued to create a knowledge based
investor community.”
Noting that reducing the risk of individual investors, BSEC is running
country-wide investment literacy program, the premier said “Under this
program, BSEC has already arranged financial literacy program at divisional
level which will gradually be extended to district level.”
By this time, Bangladesh Academy for Securities Market (BASM) has been
established to this end, she said
Calling upon the investors not to invest money in the stock market
whimsically, the prime minister said “In fact, investors are the main driving
force of the capital market. If investors take informed decision, it will, on
the one hand, help reduce investment risk and on the other hand, it will also
act as a supplementary element in ensuring stability of the market. ”
“Considering importance of this, we included this issue in our 2018
national election manifesto named ‘Bangladesh on Path to Progress and
Prosperity’ or ‘Shamriddir Agrojatray Bangladesh’”, she said.
“We believe that knowledge and techniques of investment for all of the
related stakeholders of Capital Market including retail investors will
accelerate the process of financial inclusion,” the prime minister said.
The premier hoped that under the auspice of the Asia-Pacific Economic
Cooperation’s Financial Regulators Training Initiative (APEC-FRTI), the
seminar co-organized by the BSEC and ADB will benefit the participants from
home and abroad.
This also would help them strengthen their respective stock markets through
exchange of experiences, knowledge and views, she added
The objective of the seminar is to enhance the financial literacy and
protection of the investors of the capital market.
The representatives of India, Japan, Philippines, Nepal, Cambodia,
Thailand, South Korea, Malaysia, Indonesia, and Iceland are attending the
seminar.
Among others, ADB country director for Bangladesh Manmohan Parkash and
BSEC Chairman Dr M Khairul Hossain spoke on the occasion.
A video documentary was also screened describing the role of capital
market in the country’s economic development.
Spelling out the measures taken by the government for building a strong
capital market, the prime minister said “In 2019-20 fiscal year, limit for
the tax free dividend income has been raised to 50,000 from 25,000 for the
investors in the market.”
A number of different bonds including fixed income financial product have
been issued at our initiative while two rules have been adopted on Short sell
and Risk-based Capital Adequacy, she also said.
Noting that the government has taken initiatives for capacity building of
the BSEC including adopting a new organogram, the prime minister said
“Construction of a new building for the Bangladesh Securities and Exchange
Commission has already been completed.”
Benefits and amenities for the employees have been increased and as a
whole, the institutional capacity of the Commission has been strengthened,
she also said.
She said her government is implementing a promotional package successfully
for protecting the small investors.
“Inculcation of the strategic investors has been guaranteed at the Dhaka
Stock Exchange,” the prime minister said, adding that an increased number of
participation of local and foreign investors is seen in order to form venture
capital and impact fund.
Besides, a small capital platform has been established at Dhaka Stock
Exchange as the small and medium industries can enjoy the opportunity to
receive capital and this will eventually create a great scope for enlistment
of the start-up companies, she said.
The prime minister referred to various measures which are being taken to
protect the interest of the investors that will ensure a conducive
environment for a vibrant Capital Market.
“This vibrant Market will supplement our initiative to become a developed
country within the year 2041 by supplying long-term financing for investment
in different sectors of the economy,” she continued.bss