New forum to boost capital market

Six associations working in the country’s stocks and equity markets have decided to form a new forum to boost up the share market which looked bearish since the collapse in 2010-11.

dse cseBangladesh Insurance Association (BIA) president Sheikh Kabir Hossain said this at a press briefing after a meeting on the Dhaka Stock Exchange premises on Monday to discuss the remedies for the stock market.

The six members of the planned forum are—Bangladesh Insurance Association (BIA), Association of Bankers, Bangladesh (ABB), Brokers Association of Bangladesh, Bangladesh Merchant Bankers Association (BMBA), Association of Asset Management Companies, and Bangladesh Leasing and Finance Companies Association.

Dhaka Stock Exchange (DSE) Brokerage Association of Bangladesh convener and former president of DSE Ahsanul Islam presided over the meeting where representatives from the six organisations were present.

Sheikh Kabir Hossain said the forum will primarily work for expansion, stabilisation, and vibrancy of the ailing capital market.

However, the forum may take a clear shape in another meeting likely next month.

Association of Asset Management Companies president Muhammad Fayekuzzaman requested the government to create a special refinancing scheme at a soft interest rate for merchant banks and stockbrokers and redefine the calculation of market exposure.

Bank loans are the main source of finance for the merchant banks active on the bourses.

In the meeting the associations’ leaders also discussed how to increase the institutional participation in the secondary market.

They recommended that the central bank should extend the deadline for bringing down banks’ investment exposure to the stock market.

– Prothom Alo