After former Prime Minister Sheikh Hasina was ousted, Nobel laureate Dr. The interim government has taken responsibility under the leadership of Yunus. A ray of hope has returned to the financial sector since the new government assumed office. Improvement in the overall economy has been seen with increased liquidity in the banking sector, repayment of liabilities without selling dollars from reserves, increased production in the ready-made garment sector. However, despite all these changes, there is still instability in the country’s capital market. Investors are in danger of losing capital due to long-term continuous price decline.
In this regard, for the last two weeks, the investors have protested with various demands, but the share market price has not reduced. This time, the chief adviser asked for liquidity in the capital market. An investor named Hridoy Akbar Remi is the doorkeeper of Yunus. Today Tuesday (October 22) he has written to the Chief Advisor mentioning 6 solutions for the development of the capital market.
It is said in the letter that the foreign exchange reserves in the country have been increasing in the last few months. Foreign remittances are likely to touch a record of USD 3 billion this month. Money laundering has been stopped under the leadership of the interim government and efforts are being made to bring back money smuggled from abroad. At the same time, international relations have returned to good times, including the good days of the garment sector. The interim government has lagged behind in controlling the capital market and hyperinflation amid improving economic indicators.
As a result, the investor has sent a letter of 6 proposals to the capital market seeking urgent liquidity support and solving the unstable situation.
In the letter, he said, ICB Chairman Prof. Abu Ahmed has already declared that they have no funds and he has no work except drinking tea. So, ICB should get funds from the government on an urgent basis to support the market. No time frame should be shown for loan processing. Besides, he urged other state-owned banks including Sonali Bank, which has more liquidity, to invest in the capital market.
It is said in the letter that every commercial bank in the capital market should be forced to invest according to the rules by verifying the limit of paid-up capital. Besides, the directors must hold 30 percent of the total shares of the listed company. If BSEC compels companies to comply with the law, it will increase the flow of money in the market.
It also said that according to the rules of the insurance regulatory agency IDRA – the directors of the company must hold 60 percent of the shares. In case of insurance companies listed in the capital market, even if the BSEC can enforce the law, the money flow in the market will increase.
In addition, the investor demanded to enact buy back law. In the letter, it is said that the buy back law should be enacted soon in the capital market of the country. Companies buy back shares of companies whose share prices fall below par, according to the buy back law. Although this rule is prevalent in other capital markets of the world, it is absent in Bangladesh.
