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.

Business leaders have urged Bangladesh Security and Exchange Commission (BSEC) to enlist well-performing companies in the capital market. They also demanded realization of tax with proper execution of tax difference between listed and non-listed companies to encourage companies listing the share markets. The demand came during a courtesy call on the BSEC Chairman Professor Shibli Rubayat-Ul-Islam at its headquarter in Agargaon by a group of business people led by president of Dhaka Chamber of Commerce & Industry (DCCI) Rizwan Rahman on Sunday. Also read: Meeting between FID, BB, BSEC fails to settle issues on share market investment Discussion with the BSEC Chairman the DCCI President revealed that Bangladesh will need to invest (USD) $ 608 billion from 2016 -2040 in the infrastructure sector. The current trend indicates that Bangladesh will be able to meet USD 417 billion investment in the infrastructure sector leaving a financing gap of $192 billion from 2016 to 2040, said a report of the ‘Global Infrastructure Hub’. “The capital market can play a key role to reduce the investment gap in Bangladesh as the market has a huge potential to recover CMSMEs financing gap through encouraging businesses to source long-term capital reducing dependence on banks and NBFIs,” said Rizwan. Also read: BSEC finds involvement of 9 companies in share price manipulation The DSE SME platform needs to be effectively operationalized as well as listing rules for SME Platform needs to be relaxed, he said. The businesses also urged to create a vibrant secondary bond market, priority needs to be given implementing enabling policy to develop market infrastructure, simplification of the bond issuance process, tax incentives for both issuer and investors, and credible credit rating by the national as well as international credit rating agencies.

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.

The probe committee, formed by the Bangladesh Security and Exchange Commission, has primarily found the involvement of nine companies in the recent share market price manipulation. “Further investigation is underway. The matter is thoroughly being scrutinized, and the people concerned will be called to be present before the investigation committee, if necessary,” said BSEC spokesperson Mohammad Rezaul Karim on Saturday. Also read: Insider trading: BSEC probes Dominage Steel for 'unusual' stock movement According to the BSEC, the companies are: Fu-Wang Ceramics Industry Ltd, Beacon Pharmaceuticals Limited and Anwar Galvanizing Limited in the engineering sector; Paper Processing & Packaging Ltd, National Feed Mill Ltd, Dhaka Dying, GBB Power Limited in the energy sector, and Emerald Oil Industries Ltd and Bangladesh National Insurance.