Finance Adviser Dr. Salehuddin Ahmed on Wednesday said that the government is actively working to restore investor confidence in Bangladesh’s capital market, with a focus on both short- and long-term stability measures. Following a meeting with the Bangladesh Securities and Exchange Commission (BSEC) at its headquarters in Dhaka’s Agargaon, Dr. Salehuddin addressed reporters, highlighting the government's commitment to addressing current market challenges. “We are committed to resolving existing and past issues in the stock market so that both local and international investors feel secure in their investments,” Dr. Salehuddin said. “Our approach includes both immediate measures and long-term plans to build a sustainable and robust capital market.” Finance Adviser urges banks to ensure rigorous loan scrutiny and inclusive lending He further noted that the discussions centered around key issues, including liquidity challenges and mutual funds, to ensure a more resilient market structure. BSEC Chairman Khondokar Rashed Maqsood, also present at the meeting, emphasized that several policy concerns were raised with the Finance Adviser. “I outlined key policy issues, and we anticipate that the ministry will make some visible, swift decisions to address pressing problems,” he said. The discussions touched on critical areas such as negative equity, liquidity support, tax reforms, buyback policies, and banking sector reform, all aimed at stabilizing the market and providing investor reassurance. The Finance Adviser also consulted with committees investigating stock market irregularities, signaling the government’s intent to tackle regulatory issues head-on.

Members of the Bangladesh Pujibadi Oikya Parishad staged a human chain protest in front of the Dhaka Stock Exchange (DSE) on Tuesday, expressing their frustration over the recent continuous decline in the stock market. During the demonstration, protesters called for the resignation of the chairman of the Bangladesh Securities and Exchange Commission (BSEC), holding him accountable for the ongoing downturn. DSE sees surge with Tk 358.22cr in trading today Last week, the stock market experienced a significant slump, with four consecutive days of decline, which extended into the start of this week. However, following an announcement from the Ministry of Finance pledging support to those affected by previous stock market crises and scandals, the market rebounded significantly. On Tuesday, the DSE’s main index, DSEX, rose by 68.66 points, closing at 5,241.77. The day’s trading on the DSE recorded transactions totaling Tk 358.22 crore, signaling a recovery.

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 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.