‘IPO financing couldn’t contribute much to economic growth’

Metro Desk

31 January, 2021 12:00 AM printer

‘IPO financing couldn’t contribute much to economic growth’

Former Bangladesh Bank Governor and founding Vice-Chancellor of East-West University Professor Dr Mohammed Farashuddin speaks at a seminar titled ‘BICM Research Seminar Series’ held virtually at the Multipurpose Hall of Bangladesh Institute of Capital Market (BICM) in the capital recently. Commissioner of Bangladesh Securities and Exchange Commission (BSEC) Professor Shaikh Shamsuddin Ahmed also joined the programme. —SUN PHOTO

A seminar titled ‘BICM Research Seminar Series’ was inaugurated at the Multipurpose Hall of Bangladesh Institute of Capital Market (BICM) in the capital recently.

Commissioner of Bangladesh Securities and Exchange Commission (BSEC) Professor Shaikh Shamsuddin Ahmed inaugurated the ceremony while former Governor of Bangladesh Bank and founding Vice-Chancellor of East-West University Professor Dr Mohammed Farashuddin was present in the programme as the chief guest, said a press release.

BICM Executive President and a faculty member of Accounting and Information Systems of Dhaka University Professor Dr Mahmuda Akhter chaired the event.

After the inaugural ceremony, "BICM Research Seminar -1" was held where Professor Dr Mahmuda Akter presented a research paper titled "The effects of IPO financing and monetary policy on economic growth in Bangladesh: A dynamic assessment".

Associate Professor of Department of International Business of DU Dr Suborno Barua, also the associate writer of the research paper, moderated the programme.

The research paper showed that the IPO financing in the stock market has not had much impact on the economic growth over the past 39 years starting from 1981 to 2019.

Addressing the programme, Dr Farashuddin said the share market could not contribute to economic growth much due to a lack of governance in the stock market, unfair competition with the banking system and the collapse of the market   

In his speech, BSEC Commissioner Professor Shaikh Shamsuddin Ahmed said the present commission is working sincerely to revive the market by revising the corporate governance code, using modern technology and finding new ways of financing.

 


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