Finance minister AHM Mustafa Kamal on Monday said that the government would bring better companies, especially the state-run ones, to the country’s capital market to overcome the challenges the market was facing and take the market to a sustainable position.
Kamal made the comment when he was speaking to reporters after a meeting with the capital market stakeholders and regulatory bodies in Dhaka.
The finance minister held the meeting after the key index of Dhaka Stock Exchange hit a 32-month low last week amid a relentless fall in share prices in recent months.
Kamal said that governance would be ensured at the market and the wrongdoers would not be spared.
A special committee will be formed to inspect the non-performing companies at the market.
The committee will visit the companies’ offices and check balance sheets of the companies to get the true picture of their business status.
He said the government would try to bring initial public offerings of good companies.
The government is working to ensure proper pricing of the IPOs and also to bar companies from getting more than what they deserve to make the market stable.
‘The state-run companies will be listed [on the market], but it may take time for compliance issues. The government is imposing condition on new state-owned companies that they will be listed on the stock exchanges,’ Kamal said.
He also said that an internal audit division would be formed to check anomalies in the financial statements. The commission will see balance sheets of IPOs of every company, he said.
‘The capital market is a major area of the country’s economy and the government wants to see the continuous growth at the capital market in accordance with the growth of the country’s economy,’ the finance minister said.
The government will continue providing supports for the betterment of the market, Kamal said.
The minister said the existing hurdles and challenges of the capital market would be addressed to take the market to a sustainable position on a long-term basis.
Bangladesh Securities and Exchange Commission chairman M Khairul Hossain told reporters that a joint committee might be formed with the officials of the commission, DSE and Chittagong Stock Exchange to check financial anomalies of companies.
Former interim government adviser and also former BSEC chairman Mirza Azizul Islam said that the market remained bearish as good companies were not listed, companies’ financial statements were not reliable, and there was lack of coordination among the regulators and there was a bleak situation in the country’s banking sector.
National Revenue Board chairman Mosharraf Hossain Bhuiyan said that the revenue board would increase incentives for the development of the stock market.
Bangladesh Bank governor Fazle Kabir, Insurance Development and Regulatory Authority chairman Shafiqur Rahman Patwari, Investment Corporation of Bangladesh chairman Mojib Uddin Ahmed, DSE chairman Abul Hashem, and representatives of DSE Brokers’ Association and Bangladesh Merchant Bankers’ Association were present, among others, at the meeting.
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