The Bangladesh Securities and Exchange Commission has invited the capital market stakeholders to attend a meeting on May 8 to discuss ways to boost foreign investment in the market.
To this end, the BSEC on April 15 issued letters to Bangladesh Bank, National Board of Revenue, Board of Investment, Dhaka Stock Exchange, Chittagong Stock Exchange, Bangladesh Association of Publicly Listed Companies, Bangladesh Merchant Bankers’ Association and the top three brokerage houses to send their representatives to the meeting.
Earlier on December 27 last year, the BSEC had formed a two-member committee to recommend ways to increase foreign investment in the capital market.
The recommendations of the committee were placed before the commission on March 12 and the BSEC decided to discuss with the stakeholders and seek their suggestions regarding the issue.
The BSEC committee suggested that the capital market should introduce diversified market products according to the need of the foreign investors, ensure a vibrant bond market and introduce SME market, Islamic market and derivative market, a BSEC source said.
It also suggested enlisting more bonds, asset backed securities and open-ended mutual funds to the market to attract foreign investors.
The BSEC committee recommended listing of export-oriented companies and multinational companies which have more international exposure, allowing and encouraging the asset management companies to maintain foreign fund and foreign pension funds and keeping extra quota in IPO’s for foreign investors.
The committee pointed out that the merchant banking services of the country is not well-known to the international investors.
It also suggested preparing a data base on the listed companies and highlights the investment facilities for foreign investors on the web sites of the related organisations.
-With New Age input
