Business Desk :
The country’s share market stakeholders have demanded making a compulsory provision for multinational companies (MNCs) to be listed with stock exchanges for doing business in Bangladesh.
At a virtual discussion, they also acknowledged the importance of ensuring “good governance” in the capital market to restore investors’ confidence.
“The government has earlier decided to frame mandatory provision for listing of MNCs with our stock exchanges. Unfortunately, the decision has not yet been executed due to reasons unknown,” Dhaka Stock Exchange (DSE) Chairman Md. Eunusur Rahman told the webinar, said a press release.
He pointed out that many other countries have already enacted law for mandatory provision to list the MNCs with their stock exchanges in order to ensure their vibrant market presence.
The premier bourse, DSE, organised the webinar titled ‘Awareness Programme on Dealing with Investors’ to observe the World Investor Week 2020 on Tuesday.
At the discussion attended by the chairman of the Bangladesh Securities and Exchange Commission (BSEC) Professor Shibli Rubayat Ul Islam, the DSE chairman insisted that the current commission should make sure that the government frame mandatory provision for listing of MNCs to enhance the depth of the capital market.
However, Professor Islam explained, the role of the securities regulator is to ensure good governance in the capital market, not to look at turnover values featured by the stock exchanges.
“The securities regulator has no hand in turnover values. So, it’s not logical to make the BSEC responsible for turnover values featured by the stock exchanges,” he said. Rather, the BSEC chairman added, the market would be unstable should the regulator make intervention into smaller issues.
“The job of the securities regulator is to create awareness among investors,” Professor Islam claimed.
President of Metropolitan Chamber of Commerce & Industry (MCCI) Nihad Kabir said the capital market has failed to keep pace with the growth of national economy.
“We hope the gap will be reduced in the near future, thanks to the strong leadership of the incumbent commission,” she expressed hope.
