Investors push for resolving pressing impediments

block

Muhammad Ayub Ali :

The investors of the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) want to resolve immediately the issues including fund assistance, inclusive policy support and tax relaxation to restore their confidence in the capital market.

Inclusive policy support is in dire need from the legal regulatory bodies of the capital market like the Bangladesh Securities and Exchange Commission (BSEC) Investment Corporation of Bangladesh (ICB), Bangladesh Bank, Economic Division, National Board of Revenue (NBR) and other stockholder, said Ataullah Naim, president of the Bangladesh Pujibazar Biniogkari Sommilito Parishad.

To resolve the ongoing fund crisis and shortage of market liquidity, BSEC needs fund support by the Investment Corporation of Bangladesh immediately, he added.

To strengthen the capital market stability, ensure safe investment for all investors and attract fresh participation, the interim government should give an incentive package for small investors and should implement this package hurriedly to explore the potential of the market, market experts said.

The relaxation of VAT and tax, including 15 per cent gaining tax, for attracting institutional investors and big investors to bring them back in the capital market ensuring a secure environment for all investors, Ataullah mentioned.

“We are trying our level best to restore the confidence of the investors and hopefully we will fulfill the demand of the investors very soon,” BSEC Chairman Khondoker Rashed Maqsood said to the New Nation.

When asked about resolving the continuous liquidity crisis of the capital market, Khondoker said we are trying to arrange inclusive meetings with the foreign investors and all stakeholders to increase and speed up liquid money in the market.

block

Due to the instability of the country’s banking sector and high interest rate, it will take some time to resolve the liquidity crisis, said Saiful Islam, president of the DSE Brokers Association of Bangladesh (DBA)

The regulatory bodies must keep up the confidence of the investors that they are not losing their capital, he added.

Due to the low interest of investors as well as lack of confidence, the overall economic unrest of the country plays a pivotal role in the continuing low index of the market, market insiders say.

“I invested five lakh taka in the secondary market from 2020 to 2021, and my money value is now one and a half lakh, I hoped the market situation would improve after the fall of the fascist government, but still there has been no sign of improvement” Md Rakib Hasan

We have not seen a proper solution yet, he added.
I invested three lakh taka in five years, and my capital remains nearly one lakh taka for this reason, I have lost interest in the capital market, said Md Masudur Rahman.

Demanding the stability of the capital market, investors were staging human chain recently under the banner of Bangladesh Pujibadi Oikya Parishad.

Last Sunday, The benchmark index DSEX of the Dhaka Stock Exchange (DSE) witnessed the lowest index drop by 149 points over the last four years.

The last time the index reached such a low was level on 2 December, 2020, when it fell to 4,934 points.