IMF asks BSEC to emphasize stock market automation

Staff Reporter :
The visiting delegation of the International Monetary Fund (IMF) has emphasized on automation of the stock market so that the people from various backgrounds are included in it.
The team of the multi-lateral global lender came up with the recommendation during a meeting with a delegation of the Bangladesh Securities and Exchange Commission (BSEC) led by its chairman Monday.
Following the meeting, BSEC Executive Director and Spokesperson Mohammad Rezaul Karim said that it was a routine meeting and the IMF discussed the overall infrastructure of the country’s stock market.
“They are very satisfied with the Capital Market Stabilisation Fund, saying it is a good initiative. They thanked the commission as it will play a role in market development,” Rezaul Karim said.
He said, “They (IMF) will provide technical support in the development of capital market infrastructure, including Commodity Exchange. They have also said that they will cooperate in bringing environment friendly bonds to the market. They want to cooperate to increase the demand and supply of such bonds.”
In response to the question whether floor price was discussed at the meeting, the BSEC spokesperson said, “They do not have the concept of floor price. So, there was no opportunity to discuss it.”
The IMF team suggested product diversification in the stock market to ensure the involvement of the people from all parts of the society, he said. Rezaul Karim further said that they want to know details about commodity exchange market, real estate, and other sectors’ enrollment in the share markets.
Rahul Anand, IMF Mission Chief to Bangladesh, led a seven-member delegation of the IMF while BSEC Chairman Prof Shibli Rubayat Ul Islam along with the commission took part in the discussion.
Earlier, the IMF delegation held meeting with the representative of Economic Relation Division (ERD) of the Finance Ministry. But, nobody wants to disclose the outcome of the meeting.
However, several officials of the ERD said that the IMF delegation emphasized on capacity building of different ministries and divisions for implementing development projects.
Besides, they also asked to increase intra-ministerial coordination in foreign debt management and project implantation, the officials said.
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 IMF delegation started visiting Bangladesh on October 26, to discuss and realize the economic situation as the country sought a $4.5 billion loan as budgetary support.
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, the Ministry of finance officially applied to the IMF for the loan in July this year