Written by The Banking Post
Bangladesh’s capital market has shrunk by nearly half over the past 15 years due to persistent irregularities and lack of coordination among key institutions, said Bangladesh Securities and Exchange Commission (BSEC) Commissioner Md Saifuddin.
Speaking at a seminar titled “Empowering Investors through Emerging Technology and Digital Finance,” organised by the Dhaka Stock Exchange (DSE) on Tuesday to mark World Investor Week, the commissioner warned that inefficiency and mistrust have deeply eroded investor confidence.
“Investors don’t see us as good people. They think those who run the capital market are all corrupt — and sadly, there is reason behind that perception. We must change ourselves,” he said.
Saifuddin criticised the poor communication among major market stakeholders, saying it has prevented the development of a transparent, technology-driven capital 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. Cooperation must increase,” he urged.
On the absence of any strong initial public offering (IPO) over the past 18 months, he pointed out 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,” he said.
Calling for greater transparency in corporate auditing, the commissioner urged the Institute of Chartered Accountants of Bangladesh (ICAB) to ensure stronger 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 added.
Saifuddin also disclosed that the Commission plans to introduce machine-readable financial reports to enhance transparency and efficiency in the market.
