BSEC works to “create a dynamic bond market”

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Speakers said the country’s stock market, insurers and pension funds must play an important role in achieving the Sustainable Development Goal (SDG).

Their suggestions came on Monday at a virtual seminar titled “Sustainable Finance in Bangladesh: Strategies and Options for Implementation”.

“Bangladesh aims to achieve the SDGs within a certain time frame. We will have to depend on the stock market, insurers and pension funds as the banking sector cannot provide the long term financing,” said Prof Shibli. Rubayat Ul Islam, president. of the Bangladesh Securities Commission (BSEC).

The President of the Bangladesh Association of Listed Companies (BAPLC) hosted the seminar to observe Global Investor Week 2021.

BAPLC President Azam J Chowdhury chaired the program attended by business leaders and senior officials from both exchanges.

BSEC Chairman Islam said the securities regulator is working to boost the bond market, mutual funds and the secondary stock market.

In his speech, BSEC Commissioner Sheikh Shamsuddin Ahmed emphasized proper auditing of the financial statements of listed companies.

“We need the listing of more companies to expand the size of the country’s capital market. And proper auditing of companies’ financial statements is also important for the market,” Ahmed said.

He said the companies’ rating would need to be five times to turn the market cap-to-GDP ratio to 100 percent in the next 5-7 years.

“Stakeholders, especially emissions managers, should strive to bring in more companies with good fundamentals,” BSEC Commissioner Ahmed said.

Over 5,200 companies are listed on the Indian Stock Exchange while the number is 750 in Vietnam. In contrast, the number of companies listed on the country’s stock exchanges is only 388, including 37 mutual funds.

BSEC Commissioner Ahmed also said listed companies are required to publish authentic price-sensitive information with the aim of restoring investor confidence and increasing good governance.

Dhaka Stock Exchange (DSE) Chairman Md. Eunusur Rahman said the country needs around Tk 78.920 trillion by 2030 to meet the SDG target.

“The banking sector is facing difficulties with high nonperforming loans. In this case, the stock market can play an important role in meeting the demand of the SDG,” Mr. Rahman said.

In his speech, President of the Chittagong Stock Exchange (CSE) Asif Ibrahim emphasized the role of the money market and the stock exchange in responding to environmental, social and corporate governance issues through their funding.

The president of ACI Ltd. Anis Ud Dowla said green bonds can facilitate SDG’s goal.

Md. Jasim Uddin, president of the FBCCI, Ms. Nihad Kabir, president of the MCCI, among others, were also present on the show.

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