The Bangladesh Securities and Exchange Commission (BSEC) is going to introduce bond to corona hit large corporate from this month for meeting their working capital.
“We would issue trade-able bond to large corporate like – cement, textile, ceramic, commodity or hospitality industries who suffered seriously for coronavirus pandemic,” newly appointed chairman of Bangladesh Securities and Exchange Commission (BSEC), Shibli Rubayat Ul Islam told Business Mirror on Friday in a telephone interview.
Companies who will able to mortgage their property or get insurer from Shadharan Bima Corporation will qualify for drawing money from the capital market quickly, he said.
Besides, the BSEC is contemplating to run an alternative trading board for those bonds.
“We will introduce a separate trading gateway for bond markets so that small investors along with corporate clients get more interested investors for investing in bonds,” Mr. Shibli Rubayat said.
Besides, bond can return fixed interest between 8 to 9 per cent while rate of return of bank deposit has been reduced to a 6 per cent cap, he added.
Shibli Rubayat Ul Islam also said, “Our stock market has remained dependent only on equity-based. I will focus on launching bond, debenture, Sukuk and alternative investment fund in the market”.
Previously many initiatives were taken to introduce new products in the market to increase its depth and ease volatility, but all steps became futile due to several drawbacks, market insider said.
“We are focusing to establish the concept that capital market is the main source of fund for industrialization” he added.
Professor Shibli Rubayat is also the Chairman of Sadharan Bima Corporation. He has been in the field of finance and banking education for more than last two decades.
Liquidity crunch, money market volatility, rising non-performing loan and interest rates, poor tax revenue collection, heavy government bank borrowing and coronavirus outbreak added further concerns to the waning investors’ confidence.
The exemption of margin loan during coronavirus holidays has not yet been finalized the chairman said on the issue.
Asked about launching IPO of new companies he said that a huge number of companies have already applied for drawing money from the capital market among which a few companies are at final stage which are to be opened soon.
Shibli Rubayat said on the matter of brining shares of multinational companies “When money is available at low interest rate at banks in their own country why they should come to Bangladesh capital market”.
Replying to a query about introducing share of government banks he said “Banks need to comply with BSEC audit requirements which have been stopped for coronavirus holidays”.
Prof. Shibli Rubayat Ul Islam also said that the BSEC is working intensively on introducing more online based trading where money could be transferred electronically.