B Mirror Desk : The head of the association representing publicly listed companies has stated that the equity market is not providing sufficient motivation for multinational corporations to engage.

Rupali Haque Chowdhury, president of the Bangladesh Association of Publicly Listed Companies (BAPLC), remarked on Sunday, “The equity market is lacking in quality companies. It is essential for the government to implement supportive policies and offer tax incentives to encourage multinational companies operating in Bangladesh to participate in the stock market.”

She addressed the audience as the chief guest at an event hosted by the Capital Market Journalists Forum (CMJF).

Five years ago, the disparity in tax rates between listed and non-listed companies was 10 percentage points, but this difference decreased to 5 percentage points last year, despite ongoing appeals from market participants for a broader gap.

Consequently, the number of initial public offerings (IPOs) has significantly declined, with no companies launching an IPO in 2024. To revitalize the secondary market, the regulatory body must facilitate the introduction of new IPOs.

“Why would companies pursue IPOs if they do not receive any advantages post-listing?

“They will opt for bank loans. Even though bank interest rates are high, obtaining loans is relatively straightforward,” stated Mrs. Chowdhury.

She emphasized that multinational corporations would be more inclined to list if there were appropriate incentives in place.

Additionally, a stable and long-term fiscal policy is essential to attract multinational companies to the market.

Ms. Chowdhury pointed out that non-listed companies are currently enjoying more advantages than their listed counterparts, as they can exploit the loopholes in the Companies Act of 1994.

“Therefore, a review of the Companies Act is necessary; both listed and non-listed companies should operate on an equal footing,” remarked Ms. Chowdhury, who also serves as the managing director of Berger Paints Bangladesh.