Govt to continue support for stock market development: PM

Prime Minister Sheikh Hasina today inaugurated the countrywide “Financial Literacy Programme” for the stock market investors, the first of its kind in Bangladesh, assuring that her government would continue its all out support for the development of the stock market.

“The present government would continue its all out support for the development of the stock market which would be a ‘dependable source’ of long-term funding in building a developed Bangladesh,” she said.

The prime minister formally opened the Financial Literacy Programme at a function at Bangabandhu International Conference Centre here this morning.

From the function, she also inaugurated the newly-constructed 10-storey office building of Bangladesh Securities and Exchange Commission (BSEC) at Agargaon in the city.

Finance Minister Abul Maal Abdul Muhith addressed the function as the special guest, while SEC Chairman Dr M Khairul Hossain gave the welcome speech.

Pointing out that financial literacy is very important for proper investment of the savings money of the people, Sheikh Hasina said the people of the country sometime make investment whimsically.

“They lose everything by making whimsical investment, and financial literacy is very essential to prevent the people from it,” she said, adding that it’s necessary for the people to know how and where they would make investment.

The premier expressed her firm optimism that Bangladesh Securities and Exchange Commission (SEC), Stock Exchanges and listed companies would build a strong stock market by ensuring transparency and accountability side by side with establishing good governance.

“I hope it would create a scope for massive investment and employment in service and infrastructure sectors and play an important role in national economy,” she said.

The BSEC has launched the countrywide Financial Literacy Programme for the stock market investors with the slogan “Careful Investment, Prosperous Future”.

Sheikh Hasina underscored the need for making conscious investment in the capital markets of the country and not making investment whimsically based on rumours only.

In this connection, the premier categorically mentioned that the investors whether they are big or small will have to invest in the stock markets by taking the risk of their investment.

She said that many investors cannot analyse appropriately the financial statement and other information and they become loser depending on rumours and assumption.

After losing everything, she said, they have a tendency to blame the government and the finance minister for their losses.

Following the introduction of financial literacy, the prime minister hoped that the investors would be benefitted and more dynamism would be infused into the capital market of the country due to presence of knowledge-based investor groups.

Besides, the investors would be able to make profit by making decisions considering their financial capability and probability of getting benefits, she said.

Terming economic development is the key driving force to eradicate poverty, the prime minister said her government has been continuing its all out efforts for flourishing the stock market, the most important pillar of the financial sector of the country.

Various steps have been taken to develop a stable, transparent and accountable capital market, she said, adding that the SEC has been made financially independent and legal provisions have been kept to ensure transparency and accountability of the officials.

Apart from these, she said, the government has also undertaken measures for proper training at home and abroad for the officials of the SEC.

Describing various initiatives of the government to ensure good governance of the Stock Exchanges and listed companies, Sheikh Hasina said proper regulatory measures have been taken to identify manipulation and irregularities in the transaction in stock markets.

The government would also continue special incentive packages for protecting interests of small investors, she said, adding that BSEC (Public Issue) Rules, 2015 has been framed to bring transparency in the IPO process.

Sheikh Hasina said her government has been working to flourish industrial sectors and develop country’s infrastructure, create employments, uphold financial discipline and stability.

Stock market create opportunities of supplying long term capital for the industries to achieve economic prosperity of the country while the investors get opportunity to invest their small savings in the stock markets, she added.

Sheikh Hasina wished a very strong position of the stock market as the main source of long term funding in various sectors of the country including industrial and infrastructure sectors to expedite economic growth.

Pointing out a memorandum of understanding (MoU) signed between Securities and Exchange Board of India (SEBI) and BSEC, the premier said steps have been taken to introduce new instruments and increase efficiency on investigation, supervision and oversee process in light of the MoU.

Sheikh Hasina said stability has been restored in the capital market and confidence of local and foreign investors in the country’s capital market has been increased following such steps of the government.

“Bangladesh’s stock markets are now being recognised as a fast-growing and potential capital market,” she said.

The premier said her government has been working relentlessly for flourishing industries and infrastructure development, generating employment and upholding financial discipline and stability.

She said the capital market supplies long-term investment to mills and factories for achieving economic prosperity of the country. Besides, the people get a scope for investing their savings in securities, by creating huge employment alongside flourishing the industries, she said.

Referring to her government’s initiatives for establishing 100 economic zones in the country, the prime minister said more than one crore people would be employed in various mills and factories to be set up in these economic zones.

Besides, she said, MoUs have also been signed with China, Japan and India on G2G basis to establish four special economic zones for boosting more local and foreign investments, she said.

Sheikh Hasina said currently a very good congenial and investment friendly atmosphere is prevailing in the country while the government has announced very attractive incentive packages for the developer and industrial units like tax rebate, duty free import and exports.

“That’s why, Bangladesh is now the most attractive destination of investment compared to other countries in South Asia,” she said.

While spelling out the government’s steps for development of the capital market, Finance Minister AMA Muhith said the government would now put pressure on the multinational companies working in Bangladesh to invest in the capital markets of the country as the market has already got international recognition.

The finance minister expressed his firm optimism that the stock market of the country would stand on a solid foundation in the next two years of the tenure of the present government.

Source: BSS