Staff Correspondent: Chief Adviser Prof Muhammad Yunus on Sunday gave five specific directives to address the issues related to the country's capital market and keep it vibrant through necessary quick reforms.
In a bid to reform the stock market effectively, the government has decided to bring in a team of foreign experts. These experts, with no vested interest in Bangladesh's capital market, will be tasked with delivering actionable reform recommendations within three months.
After the meeting, Chief Adviser's Press Secretary Shafiqul Alam told reporters that Prof Yunus gave five major directives.
At the start of the meeting, BSEC Chairman Maqsood gave a brief presentation outlining the progress and reform measures taken in the stock market over the past nine months.
Five Directives:
Take necessary steps to reduce the government's shareholding in government-owned multinational companies and include them in the capital market.
Take necessary steps, including incentives, to encourage large domestic companies in the private sector to list in the capital market. Bring in foreign experts to reform the capital market within three months to prevent manipulation by vested interests.
Take strict action against everyone involved in irregularities in the capital market, and take measures to encourage business organisations that require large loans to reduce their dependence on bank loans and raise funds from the capital market through bonds and equities.
During the meeting, Yunus also suggested offering shares in multinational firms, such as Unilever, to the public, a participant at the meeting said. Finance Adviser Salehuddin Ahmed, Special Assistant to the Chief Adviser Anisuzzaman Chowdhury, Secretary of the Financial Institutions Division Nazma Mobarek, and Bangladesh Securities and Exchange Commission (BSEC) Chairman Khondoker Rashed Maqsood were present at the meeting.
One of these involves offering incentives to non-listed companies that perform well, encouraging them to go public.
Yunus further instructed the inclusion of foreign experts within three months to implement effective reforms in the market.
The fourth directive was about ensuring strict punishment for those involved in corruption and market manipulation.
Besides, the chief adviser urged authorities to encourage large borrowers to raise capital from the stock market by issuing equity and bonds, reducing reliance on bank financing, said the participant.
The DSEX, the benchmark index of the Dhaka Stock Exchange, has been on a downward trajectory in recent months following a decline in the profits of several large firms.
Recently, a group of investors protested in the streets, demanding the resignation of the BSEC chairman.