Bangaldesh Securities and Exchange Commission (BSEC) Chairman Prof Shibli Rubayat-Ul-Islam hopes that the capital market will see a major change if the money to set up industries is taken from the market instead of banks.
“The share market will see a big change in next two years and for that more money should be taken from the equity market for more flourishing of industries,” the BSEC chairman said.He was addressing a dialogue of Economic Reporters’ Forum (ERF) on business and economy at ERF office in the capital on Saturday.
“It is not possible to advance the economy with heavily depending on the banking system for industrialization,” Prof Rubayat remarked.
Annual size of the country’s economy is $300 billion and its budget size is Tk 5 trillion. But every year only Tk 10 billion to Tk 15 billion is being withdrawn from the share market, which is very low compared to necessity, according to him.
“Collection of capital from the share market should be increased for the country’s industrialization. We’ve to look at bond market for that. At the same time, good companies should be listed,” he pointed out.
Since his taking office nine months ago, total capital in the market was Tk 3.5 trillion, which has now increased to around Tk 5 trillion. “The market is gradually improving. And I hope that it will reach a better level in next two years.”
For making the market more vibrant, he suggested creating a 15 percent corporate tax gap between listed and non-listed companies, which is now only 3.5 percent. “Otherwise, good companies won’t be interested in being listing.”The BSEC chairman thinks that the scope of market manipulation like those of 1996 and 2010 has squeezed with some modernization initiatives.
In reply to a question, he also suggested investing the reserve money with keeping the amount enough for meeting six months import bill as the foreign currency reserve will cross $50 billion in short time.
ERF secretary SM Rashidul Islam moderated the dialogue chaired by its president Sharmin Rinvy.