In a bid to improve the current state of Bangladesh’s capital market, Chief Adviser Professor Muhammad Yunus has issued five key directives, including one to enlist the multinational companies with government shares on the capital market, aimed at reform and restoring investor confidence.
The directives were announced on Sunday, May 11, during a high-level meeting with relevant stakeholders at the state guest house Jamuna. Following the meeting, the Chief Adviser’s Press Secretary, Shafiqul Alam, briefed reporters on the decisions.
Prof Yunus asked authorities to lower government shares in the multinational companies operating in Bangladesh. He also emphasized the importance of boosting private sector involvement in the capital market. He instructed authorities to design incentive-based policies to encourage large domestic private companies to go public and list their shares.
To ensure the integrity of the market, the Chief Adviser stressed the urgent need for comprehensive reform. He called for the engagement of foreign experts to help overhaul the market structure within three months, with the goal of dismantling manipulation networks run by vested interest groups.
Additionally, Yunus directed regulators to take strict legal action against all individuals involved in market irregularities. Without accountability, he warned, restoring public trust would remain elusive.
Finally, the Chief Adviser highlighted the need for businesses requiring large-scale funding to reduce their dependence on bank loans. Instead, he recommended measures to encourage these firms to raise capital through bonds and equity in the stock market.
Professor Yunus voiced deep concern about the deteriorating condition of the stock market, saying it had been reduced to an “unimaginable” state by decades of unchecked exploitation. “We must break this cycle. People need to believe in the market again. It must not remain a haven for looters,” he said.
The meeting was attended by key figures including Economic Adviser Dr. Salehuddin Ahmed, Special Assistant to the Chief Adviser on Finance Anisuzzaman Chowdhury, and the Chairman of the Bangladesh Securities and Exchange Commission (BSEC), Khandaker Rashed Maksud.