B Mirror Desk : The ongoing downturn in the capital market has rendered many ordinary investors financially vulnerable. Merchant bankers have voiced their concerns that without prompt and effective intervention, the situation may deteriorate further.

This was highlighted during a significant meeting convened by the Bangladesh Merchant Bankers Association (BMBA) on Monday, May 12, as detailed in a press release from BMBA Secretary General Muhammad Nazrul Islam (FCMA). The meeting was chaired by BMBA President Majeda Khatun, with participation from the Vice President, Secretary General, Executive Committee members, and representatives from various merchant banks. During the discussions, President Khatun and other leaders called on the government and relevant authorities to implement urgent and effective measures to stabilize the capital market and foster a more investment-friendly environment.

The meeting thoroughly examined the current state of the capital market, focusing on issues such as the negative equity faced by merchant banks, unrealized losses, and the overall investment climate. Participants identified negative equity as a critical challenge that has emerged in the current market landscape. The attendees also deliberated on the timeline and action plan for addressing the negative equity concerns outlined in a letter from the Bangladesh Securities and Exchange Commission dated April 24, ultimately agreeing to request an extension from BSEC to gradually rectify the negative equity of merchant banks over the next five years.