BSEC’s initiatives strengthen country’s share market

The economic growth of Bangladesh, the South Asian nation, is influenced by many different factors in and outside the country, with the capital market have a huge role to play in the economic development. The densely populated country has a larger economy that is growing at a faster pace despite many obstacles. With Asia’s most exciting long-term demographic records, Bangladesh is moving forward.

Usually, a stock market is actually a public market where people can buy and sell shares on the stock exchange as it provides listed companies a source to raise capital for investment and expansion. All the financial securities are bought or sold by the investors and the traders in the share market. It serves as an indicator of the state of the economy of a country, helping to increase investment in a country. It also helps create personal wealth.
Bangladesh has two stock exchanges- Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange- led by the Bangladesh Securities and Exchange Commission (BSEC) established on 8th June, 1993.

BSEC is acting as the regulator of Bangladesh’s capital market under the provision of Bangladesh Securities and Exchange Commission Act 1993. To protect the interest of investors in securities, develop the securities market and make rules are the main purposes of the commission.

The BSEC consists of the Chairman and four Commissioners who are appointed by the government bodies where the commission chairman acts as the chief executive of the regulatory body. With the aims of protecting the interest of investors in securities, developing the securities market and promulgating rules on these issues or on related matters thereunder. So now, according to the official website of the commission it is protecting the interest of investors in securities; developing the securities market; formulating rules on securities related matters or on related topics thereunder.

The BSEC authorities, presently led by its Chairman Shibli Rubayat-Ul-Islam, have taken many initiatives to attract investors in a bid to bring investment in the country’s share market. The BSEC has initiated many roadshows in different countries to showcase the strength and opportunities of the share markets in Bangladesh.

Recently, it organized a week-long roadshow in several states of the United States of America, to showcase the strength and opportunities of business and investment in Bangladesh for the investors abroad. The roadshows were successfully held in four cities- New York, Washington DC, Los Angeles and San Francisco- from July 26 to August 2, 2021. According to a press release issued from the BSEC, the main title of the USA roadshow was- ‘THE RISE OF BENGAL TIGER: Potentials Of Trade and Investment in Bangladesh.

This USA roadshows have earned a heavy attractions for the country’s stock market to the foreign investors and expatriate Bangladeshis living in the USA. Bangladesh share market gets a positive opinion with the roadshows. It certainly builds the country’s positive image in the foreign soil.

Different high-level delegations from government and private sectors, including Walton’s ten-member high-level delegation joined the roadshow. Walton is the market leader of country’s electrical and electronics products that is enlisted in the country’s share market recently, with the first trading of its shares on 23 September 2020. Like Walton, many largest companies in Bangladesh have already been enlisted in the share market and they are doing well to boost the market.

Earlier, according to newspaper reports, the BSEC authorities also organised a four-day roadshow in Dubai from February 9-12 this year as part of its efforts to lure foreign investors and non-resident Bangladeshis (NRBs) to the country’s bourses.

It has also plans to hold similar roadshows in the popular cities like London, Rome, Toronto, Hong Kong, Singapore, Shanghai and Tokyo by turn. So these are the positive signs in country’s stock market and our economy. This initiatives also prove that country’s economy is getting larger.

In those of the roadshows, the investors are guaranteed a high rate of return by investing in the Bangladesh stock market with having a sound environment in terms of investment as Bangladesh is now witnessing the political stability, a dynamic growing economy and especially a moving stock market over the last couple of years with increasing the reserve records day by day.

Under the leadership of BSEC, the companies listed on the stock market are regularly monitored maintaining some effective steps. Reports say, the Bangladesh’s stock market has performed the best in Asia in the third quarter of 2020 during this Coronavirus pandemic. DSE during this period also shows the double digit growth in the market.

As the Bangladesh government promotes private sector-led growth, the main investors in the country are China, South Korea, India, Egypt, the United Kingdom, the United Arab Emirates and Malaysia, according to data from Bangladesh Bank and United Nations Conference on Trade and Development (UNCTAD).

As an efficient capital market helps allocate capital to businesses, policymakers in the share market can play an important role in bringing investors’ confidence here. First of all, we have to earn confidence of the investors, keeping up with the country’s economic growth.

The stock markets of Bangladesh were closed for two months due to the coronavirus pandemic when the New York Stock Exchange shifted to electronic trading after two traders were tested positive for Covid-19. It means we have to go with technology in trading as it’s the era of information and technology. Corona has pushed us to be tech-friendly in a quickest possible time along with other developed world.

On the other hand, in a bid to boost the country’s share market, the authorities should introduce the small and medium business sectors with other large companies included because the limited numbers of companies are now enlisted in the country’s stock market when countries around the listed thousands of companies in the market.

Shadman Sakib Dipro, a guest writer at risingbd.com