Commerce Minister Tipu Munshi today said that both financial literacy and good business organizations are must to boost investment in the capital market. The stock market is a crucial sector for the country’s economy, so knowledgeable investors can drive the capital market to be sustainable, he said. The minister said this while speaking as the chief guest at the inaugural session of the Arthosuchak Capital Market Expo-2023, held at Institute of Diploma Engineers’ Bangladesh (IDEB) in Dhaka. Tipu Munshi said that more than 50 percent of money is taken from the capital market in developed economies. “We don’t have that situation in our country. Loans are taken from banks, which is creating several problems in the banking sector. If even 50 percent of the money came from the capital market, business and trade in our country are bound to improve,” the minister said. A group with vest interest is cleverly defining the country’s political and economic development – spreading rumours and lies and trying to mislead people, the minister said. Read more: BSEC working to enhance financial literacy for capital market investors: Prof Shibli “The country has progressed so much, and they say, it is not right. But they can no longer deny the visible improvement. Those who are doing this, they do not want development of this country,” Munshi said. Professor Shibli Rubayat-Ul-Islam, chairman of BSEC, attend the function as special guest, while Ziaur Rahman, editor of Arthya Suchak presided over the program. Chairman of Dhaka Stock Exchange (DSE) Md Eunusur Rahman, Chittagong Stock Exchange (CSE) Chairman Asif Ibrahim, Bangladesh Publicly Listed Companies Association (BAPLC) President Anis Ud Dowla, Bangladesh Merchant Bankers Association (BMBA) President Sayedur Rahman and Dhaka Brokers Association (DBA) President Richard De Rosario, among other, spoke in the function. Read more: IMF for capacity building of capital market in Bangladesh

The market capitalisation of the Dhaka Stock Exchange (DSE) increased by Tk4.47 lakh crore in the outgoing year 2022, as the 250 treasury bonds started trading in the DSE. Although the index and the share price of most of the companies fell, the market value of 250 treasury bonds and Islamic Sukuk bonds started trading in the capital market for the first time in the DSE. DSE data shows DSE started trading in 2022 with a market capitalization of Tk 3.14 lakh crore. Then on October 10, 2022, 250 government securities were listed on DSE. The market cap stood around Tk7.73 lakh crore. The market cap slightly decreased to Tk7.61 lakh crore at the end of the year. Read more: Shakib’s company involved in share manipulation, DSE investigation finds Among the transaction, the trade volume of the block market was Tk14253.19 crore, which is 6.4 percent of the total transaction. This ratio was 3.97 percent of the total transaction in the previous year. The transactions in the block market have increased compared to the previous year (2021). The investors in the capital market passed another year, along with frustration and uncertainty in the capital market due to the global recession, which erupted from the Covid-19 pandemic and the Ukraine-Russia war. Chairman of the Bangladesh Securities and Exchange Commission (BSEC) Professor Shibli Rubayat –Ul-Islam told UNB that the regulator is working to improve the market situation through diversified products. Read more: DSE share trading between 10am and 2:30pm from tomorrow “But the global situation, which is beyond our control, has created uncertainty in several sectors including capital market,” he said.

The chairman of the Bangladesh Security and Exchange Commission (BSEC) Prof Shibli Rubayat-Ul-Islam has said that the capital market regulator is working to enhance the public's financial literacy so they can invest consciously and profitably. To this effect, the BSEC is cooperating with the Ministry of Education and the National Curriculum and Textbook Board (NCTB) to include a chapter on the capital market in the secondary and higher secondary levels textbooks. Talking to UNB, Prof Shibli acknowledged that sometimes people are being influenced to invest their hard-earned money or chasing misinformation.  "If they can become financially literate, then no one can cheat them," he said. Read more: Under, over-invoicing to stop if commodity exchange is launched: BSEC Chairman With a nationwide average of 24.6 percent, the financial literacy score in Bangladesh is still quite low, according to a recent survey by the Bangladesh Bureau of Statistics and Brac Business School. Respondents with an educational qualification below SSC, people aged over 50, self-employed people, Dhaka natives, housewives, and farmers have the lowest scores, according to the 2022 survey report. The BSEC is working to introduce real estate investment trust, or REIT, Pink, and Orange bonds in the capital markets by 2023. Through Pink bonds, small entrepreneurs can collect money for investment while SMEs and large entrepreneurs can collect money through Orange bonds.  Both the coloured bonds will be introduced to encourage women investors as well as empowering them in the financial sector, Prof Shibli said. Read more: Visiting IMF team will meet BSEC to discuss capital market on Nov 7 Besides, the BSEC has a special bond plan for the garment and textile sector so that the entrepreneurs can collect money from the capital market to expand their business. At the same time the investors will encourage investment in this secured sector, he said. Prof Shibli said the country’s development projects cannot be completed depending on revenue only - project-based infrastructure bonds and municipal bonds for fund collection from the stock market would be a diversified funding scope for development. If the project authority provides dividends of around 12-13 percent, then people will invest money in the project-based bond market instead of depositing their money in FDRs and saving certificates, he said. He said Bangladesh’s investment demand is over USD $800 billion for infrastructure and other service sector development in line with LDC graduation, which will not be possible to collect from domestic sources. But a large portion is possible through the capital market. Read more: Takes 6-12 months to identify a share market manipulator in existing system: BSEC Chairman Replying to a question he said that investors who have the patience to invest in the capital market and who want to secure investment scope should invest in the bond market and get greater dividends than their returns from IDFs and saving certificates. Mutual funds, Treasury bonds’ and others are trading in the capital markets, where anyone or ordinary people can invest money. He said that the mutual funds are providing dividends of around 10 to 20 percent  during the last 10/12 years. "Those who have financial knowledge can invest in secondary share trading, and try to gain profit. They should prefer bonds and mutual funds," the BSEC chairman said. The regulator has pushed through dozens of reforms in the capital market, from imposing company audit systems and towards accountability of brokerage houses during his tenure. As a result, the capital market will be  well-positioned in the future. Read More: Financial literacy: BICM reduces master's program fees by 50% “We just planted the seed, from which the tree or plant will be visible within the next few years,” Prof Shibli said.

Visiting the delegation of the International Monetary Fund (IMF) in a meeting on Monday (November 07, 2022) suggested the capacity building of the Bangladesh Securities and Exchange Commission (BSEC) to act in a way so that people from various backgrounds are included in the market. BSEC’s executive director and spokesperson Razaul Karim told UNB that in the scheduled meeting the IMF team suggested product diversification in the stock market to ensure the involvement of the people from all parts of the society. Read more: IMF team attends BERC presentation on setting power, gas tariffs They (IMF) want to know details about the commodity exchange market, real estate, and other sectors' enrollment in the share markets. The IMF will support both technological upgradation and human resource development of the capital market so that the market can act maintaining the global standard, he said. Rahul Anand, IMF Mission Chief to Bangladesh, led a seven-member delegation of the IMF while Professor Shibli Rubayat-Ul-Islam, Chairman of BSEC, along with the members of BSEC took part in the discussion. Read more: IMF’s conditions for loan: TIB watchful about “discriminatory implications” Earlier, the IMF team met for discussion with the finance ministry, Bangladesh Bank, Bangladesh Bureau of Statistics, Power Division, Bangladesh Energy Regulatory Commission, and Bangladesh Garment Manufacturers and Exporters Association (BGMEA). As part of the ongoing discussion on Monday, the IMF team met with the top management of BSEC and gave some suggestions to develop the capacity of the regulator. The delegation of the Washington-based global lender started visiting Bangladesh on October 26, to discuss and realise the economic situation as the country sought a $4.5 billion loan as budgetary support. Read more: Bangladesh doesn’t need to borrow from IMF if dignity is sacrificed: FBCCI President Bangladesh so far never seeks such a big loan from a global lender. The wave of the Covid-19 pandemic and the Russia-Ukraine war have affected the country’s foreign exchange reserves. As a result, Bangladesh ministry of finance officially applied to the IMF for $4.5 billion loan in July this year.

The International Monetary Fund (IMF) will sit in a meeting with the Bangladesh Securities and Exchange Commission (BSEC) on November 7 to discuss issues including the current status of the capital market and the imposition of floor prices. Bond market development, risk management and control, compliance infrastructure and enforcement measures in the market will also be discussed in the meeting, according to officials involved with the process. Read more: Bangladesh Bank will go slow in calculating reserves following IMF formula BSEC spokesperson Mohammad Rezaul Karim told UNB on Monday that the regulator is making all preparations for the meeting. BSEC Chairman Shibli Rubaiyat-ul-Islam, Commissioners, and Executive Officers will be present in the meeting, he said. To prevent the ongoing fall in prices, the BSEC floor price system was imposed on the capital market on July 28 this year. Although its market is on the rise, two-thirds of the companies listed in the capital market are currently stuck at the floor price. Investors are not able to buy and sell shares of these companies despite their desire. Read more: Talks for loan with IMF satisfactory, says central bank spokesman As a result, the capital market transactions are continuously decreasing. A delegation of the global lender IMF from Washington arrived in Dhaka on October 26 to discuss a $4.5 billion loan sought by Bangladesh amid dwindling foreign currency reserves.

Capital market investors in Bangladesh suffered losses amounting to Tk2829.94 crore last week (Sep 25-29), according to the weekly market transactions. Of the total five working days, the market saw three days of decline and two days of rises in the index. Both trades and indexes were during the week. Share prices of most of the traded companies also fell. As a result, the market capital of investors has decreased by Tk2829 crores. Read: Shakib’s company involved in share manipulation, DSE investigation finds Shares and units of 386 companies were traded in Dhaka Stock Exchange (DSE), the main capital market of the country. Of them, 61 companies' share prices increased, 173 decreased, and 152 were unchanged. The DSE index fell by 51 points to 6,512 points in the week as the share prices of most companies fell. Among the other two indexes of DSE and DSES (Bangladesh Dhaka Stock Exchange Broad Index (DSEX) including value, chart, profile and other market data  ) decreased by 17 points to 1419 points and the DS-30 index decreased by 35 points to 2330 points compared to the previous week. Bangladesh Market capitalization (capital) decreased by Tk 2829.94 crore in the week due to a decrease in index and price. But in the previous week, the capital had increased by Tk2617.42 crore. Read Strengthened capital market to drive growth: Finance Minister The market capital of Bangladesh at the beginning of the week was Tk 522763.99 crore. After trading on Thursday, the last working day of the week, the capital stood at Tk 519 914.04 crore. The capital decreased by 54 percent. The main DSE index fell by 51 points to 6,512 points in the outgoing week as the share prices of most companies fell. Among the other two indices of DSE, the DSES index decreased by 17 points to 1 419 points and DS-30 index decreased by 35 points to 2330 points compared to the previous week.

Though the investment volume of banks in the capital market has increased, many are still far away from their investment limit. Despite the policy relaxation and enforcement of Bangladesh Bank (BB), 36 out of 61 scheduled banks of the country have invested in the stock market. Md Serajul Islam, executive director and BB spokesperson told UNB that the central bank set a target for banks to invest in the capital markets. Also read: BB to release new notes of Tk23000 crore ahead of Eid Though the BB set a limit on investment in the share market, the banks are ignoring it as the compliance is not obligatory by law, he said. The latest data found that 36 banks have constituted a special fund of Tk5720 crore so far to invest in the capital markets, far below permitted limit of TK 7200 crore. Of the fund, Tk1400 crore has been invested in ‘sukuk bond’, a bond that conforms to Islamic strictures on the prohibition of charging or paying interest. The central bank relaxed policy for scheduled banks to invest in the share markets on August 31, 2021, after the finance ministry’s instructions in this regard. The banks have now a ready fund of Tk2230 crore for investing in share markets at any time. Banks have certain limits on investing in the capital market. A bank can invest up to 25 per cent of its regulatory capital in the capital market. But to increase the liquidity flow in the capital market, Bangladesh Bank offers an additional investment of up to Tk 200 crore for banks out of this fund. But the banks did not go up to the approved size to invest in the capital market. Banks can still add more Tk1, 480 crore to the special fund if they wish, the BB sources said. Around Tk 3711 crore ( Tk 2231 crore of existing fund plus Tk1480 remaining addable fund) banks can invest in the capital market. Prof Shibli Rubayat-Ul-Islam, Chairman, Bangladesh Securities and Exchange Commission (BSEC) told the correspondent that the capital market would be strengthened if the banks’ investment limit is fully injected in the market. He also urged the banks to help build a stable and investment friendly capital market. Also read:BB to fix interest rates for NBFIs too However, the Chief Executive Officer a 4th generation bank told UNB that banks have to secure the interest of depositors first before investing money anywhere. Wishing not to be named he said there are any shares, but for lack of good shares they cannot invest money in the capital market. He suggested increasing the number of good and credible companies in the market to attract investment from the banks.

The ministry of finance called strengthening capital markets literacy activities to raise awareness among investors to build sustainable stock markets for future generation. The ministry has given some specific directives to Bangladesh Securities and Exchange Commission (BSEC) as part of government's initiative to reform the sustainable capital market. Read:Stock markets continue to fall on the third day Tuesday The Financial Institutions Division (FID), a wing of the finance ministry, has sent a letter with the directive to the BSEC chairman recently. The letter asked BSEC to enhance surveillance so that no company or institution can enter or exit the capital market illegally. At the same time, the letter mentioned that a team of finance ministry will keep a close watch on the markets, so that no dishonest syndicate can influence the capital market through manipulation. Read:Capital market to follow banking sector's ‘lead’ in operating during lockdown The letter also directed BSEC to keep close observation on the companies, stakeholders or institutions’ share transactions in the capital market, and bring suspicious transactions under special scrutiny. The letter has also called for instant legal action if any company is found involved in anything illegal and strengthens coordination with all organizations involved in the capital market.

The government has planned to create a Tk 850-crore revolving fund for five years to invest it in the capital market and utilize it during any crisis to keep the market stable. Sources at the finance ministry said the Bangladesh Security and Exchange Commission (BSEC) sent a proposal to the financial institution division this week. “The proposal will be placed before the higher authorities for the approval,” said an official adding that the size of the revolving fund will be about Tk 850 crore and the term will be five years. Read: US investors: Bangladesh showcases its capital market potential “If there’s any crisis in the capital market, money can be used from this fund. Investment Corporation of Bangladesh (ICB) will take care of the fund,” the official said, wishing anonymity. In 2010, the capital market suffered a setback and went through a depression as shares of most of the listed companies suffered record losses in their prices and the capital market took a decade to bounce back.

Bangladesh showcased the potential of its capital market and trade and investment opportunities in the country to the US investors.  Bangladesh Securities and Exchange Commission (BSEC) organized a ‘Stakeholders’ Meeting’ in the US capital, Washington, DC, recently to showcase opportunities to the US investors. The meeting was part of BSEC’s ongoing Roadshow titled ‘The Rise of Bengal Tiger: Potentials of Trade and Investment in Bangladesh’ being held in Washington DC, New York, Los Angeles, and San Francisco, said the US Embassy in Dhaka on Friday.  Also read: Bangladesh seeks US partnership in vaccine production  A high-level delegation, led by PM’s Adviser for Private Industry and Investment to the Salman Fazlur Rahman, participated in discussion and exchanged views with the stakeholders in a lively interactive session.  Finance Division Senior Secretary Abdur Rouf Talukder, Commerce Secretary Tapan Kanti Ghosh, ERD Secretary Fatima Yasmin, BIDA Executive Chairman Sirajul Islam, BSEC Chairman Prof Shibli Rubayat-Ul-Islam were, among others, in the discussion panel.  Adviser Rahman highlighted Bangladesh economy’s strong resilience even during the Covid-19 pandemic while the BSEC Chairman presented the recent developments in Bangladesh’s capital market and economy.  The discussants also showcased the robust economic growth and investment potentials in Bangladesh.  Also read: Bangladesh will continue to attract foreign investments, defying downturn: US They also welcomed suggestions and recommendations from the participating stakeholders regarding promoting trade and investment in Bangladesh and its facilitation to foreign investors.  The stakeholders’ meeting was attended by the prominent members of non-resident Bangladeshis (NRBs), foreign investors, representatives of development partners, and the US federal entities. Bangladesh Embassy in Washington DC, provided necessary assistance to BSEC and the organizers for successful organization of the meeting.