Experts in a seminar recently said equity market should be a regular source of finance to industrialise the country.
As part of observing the World Investor Week, the Institute of Chartered Accountants of Bangladesh (ICAB) organised the seminar on 'capital market & economy; role of investors' at ICAB Auditorium in the city Friday.
"Ensuring smooth operation of primary and secondary market, increasing financial literacy among investors, minimizing volatility of the market, expanding issuer base, creating both individual and institutional investors, enhancing efficiency of the brokerage house, broadening innovative financial services, initiating knowledge-based trading, rationalizing cost of generating funds and costs of funds, lessening formalities involved and required documents, introducing self-registration system are also needed to develop the stock market," the seminar pointed out, said an ICAB statement.
Prof. Dr. M. Khairul Hossain, Chairman, Bangladesh Securities and Exchange Commission (BSEC) graced the occasion as the Chief Guest. Three BSEC Commissioners Prof. Md. Helal Uddin Nizami, Md. Amzad Hossain and Dr. Swapan Kumar Bala FCMA were present as Special Guests.
Saifur Rahman, Executive Director, BSEC and K. A. M Majedur Rahman, Managing Director, Dhaka Stock Exchange Ltd were also present as Guests of Honour.
Mostafa Kamal FCA, Acting President - ICAB delivered the address of welcome while Md.
Shaifur Rahman Mazumdar FCA, FCMA, Member Council -ICAB conducted the seminar as the Session Chairman.
Dr. Prashanta Kumar Banerjee, Professor & Director, Research Development and Consultancy, Bangladesh Institute of Bank Management (BIBM) presented the key-note paper.
Prof. Dr. M. Khairul Hossain, Chairman, Bangladesh Securities and Exchange Commission (BSEC) said that the ratio of GDP growth and the capital market capitalisation is very low in our country comparing in other countries like USA, Hong Kong, Singapore, India, etc. He said capital market in Bangladesh is yet to develop properly to contribute the economy. If the proportion of GDP growth and capital market capitalization is increased, the economy of the country would also be developed, he added.
He said after 2010, BSEC have taken a number of initiatives like introduction of automated trading through electronic registration and transfer of securities, guidelines for conversion from close- end mutual funds to open-end mutual funds, promulgation of Bangladesh Securities and Exchange Commission Rules (exchange traded funds) 2016, guideline for issuance of financial derivatives-2016, guidelines on corporate governance on compliance, conducting several financial literacy programmes to bring the investors' confidence in the market.
He also informed that BSEC would introduce corporate governance guidelines very soon.
He said foreign investors consider return of their investment and the risk.
After assessing these parameters, they take decision for investment. In these aspects, Chartered Accountants can play a very vital role through establishing comparability of the financial disclosures.
Dr. Swapan Kumar Bala FCMA, Commissioner, BSEC said that CAs are professional accountants who know how to protect the general investors. Auditing is very important valued added services to the economy.
He urged the professional chartered accountants to be more pro-active in delivering their services and in increasing quality instruments in the capital market so that investors feel secured while they take decision for investment. He said ICAB is very proactive to response the query of BSEC and it would continue its service.
ICAB Acting President Mostafa Kamal FCA said it is the responsibility of all to protect the interest of investors.
Bangladesh has a bigger number of small investors comparing to any other countries, but they are not much capable to take decision independently.
BSEC commissioners Prof. Md. Helal Uddin Nizami Md. Amzad Hossain and Executive Director Saifur Rahman, and Managing Director, Dhaka Stock Exchange Ltd K. A. M Majedur Rahman also spoke on the occasion.
ICAB Vice President Md. Mahamud Hossain FCA gave concluding remarks.