'Capital market shrinks by half in 15 years'

 
Bangladesh's capital market has contracted by about 48 percent over the past 15 years due to persistent irregularities and poor coordination among key institutions, said Commissioner of the Bangladesh Securities and Exchange Commission (BSEC) Md Saifuddin on Wednesday.

Speaking at a seminar titled 'Empowering Investors through Emerging Technology and Digital Finance', organised by the Dhaka Stock Exchange (DSE) on Tuesday marking World Investor Week, Saifuddin said the prolonged inefficiency has eroded investors' confidence, UNB reports. "Investors don't see us as good people. They think those who run the capital market are all corrupt; and unfortunately, there is reason behind that perception. We must change ourselves," he said.

The BSEC commissioner criticised the lack of coordination among the market's main stakeholders, saying it has hindered efforts to build a technology-driven and transparent market.

"If we truly want to transform the market, we must act now. Sit together, talk to one another - whether it's the Commission, ICAB, CDBL or CCBL. Communication and cooperation must increase," he urged.

Explaining the absence of any strong initial public offering (IPO) over the past 18 months, Saifuddin noted that the capital market is not a consumer market. "We often talk about product diversity in IPOs when the real discussion should be about investable assets."

Calling for greater transparency in corporate auditing, he urged the Institute of Chartered Accountants of Bangladesh (ICAB) to strengthen oversight and uphold integrity.

"Trust is our only asset to investors. Once that trust is broken, the market will collapse. Financial reports must be prepared with the sanctity of a priest," he said.

Saifuddin also revealed that the Commission plans to introduce machine-readable financial reports to enhance transparency and efficiency in the market.