Dhaka, Bangladesh
Invest prudently in share market

Invest prudently in share market

PM asks small investors

Business Desk Prime Minister Sheikh Hasina on Wednesday called upon the small investors to know in detail before investing in any company. She also stressed the need to strengthen the stockmarket for funding big projects. “I’ll request you to know in detail before you invest in any company. We never want anyone to bear any financial loss after investing in a company,” Sheikh Hasina told retail investors. “You’ve to take steps after having a clear idea about everything, but don’t take any decision after getting influenced by anyone else,” she said. The Prime Minister said this while speaking at a programme marking the celebrations of Silver Jubilee of Bangladesh Securities and Exchange Commission (BSEC) at Bangabandhu International Conference Centre (BICC). Sheikh Hasina said whenever investors get affected with their own decisions, they blame the government though the government has little to do with it. She made a series of recommendations to propel the capital market and increase investments in the private sector. These include the development of the bond market as a source of long-term finance, investment opportunities and new products. Hasina asked the regulators to focus on capital market training and spreading knowledge about investment at all levels, by conducting seminars, workshops and discussions. She also asked everyone to come forward in ensuring transparency, accountability and discipline in the capital market. “I am sure the economy will develop further through the investment in the private sector once these programmes are implemented,” the prime minister said. The prime minister said her government will provide assistance to develop the capital market in order to make it a reliable source of funds to create a developed Bangladesh. “We have continued to provide our assistance to develop the capital market, one of the pillars in our economy and it has reached a stable position today. Globally, Bangladesh is now known as a fast-growing market with a lot of potential.” The prime minister recalled different steps taken by the government — demutualisation of stock exchange, legal amendment, Financial Reporting Council and investment incentives — since the market collapsed in 2010. “BSEC has received the honour of being category ‘A’ regulator and foreign investment has increased due to our actions. India, China and other countries are showing interest in our market.” The prime minister hoped that the memorandum of understanding signed between the regulators of India and Bangladesh and the Chinese consortium becoming the strategic partner of Dhaka Stock Exchange will increase the ‘depth’ of capital market and will benefit investors and other stakeholders. Finance Minister AMA Muhith, Financial Institutions Division Secretary Md Asadul Islam and BSEC chairman Dr M Khairul Hossain also spoke at the programme. The Prime Minister asked the BSEC to continue its role of ‘regulator and assistant’ in flourishing the capital market to bring more dynamism into it. Finance Minister AMA Muhith announced slashing the capital gain tax for the shareholders of capital market to 5 percent from the existing 15 percent if the shareholders invest their net sales profits in the share market for three years. “The bourse’s member-shareholders, who want the incentive, must submit an investment proposal before getting the waiver from the government,” he told the programme.In his speech, Muhith said the initiative will not only strengthen the capital market, but also make the market as a lucrative one before the world. He said the government now could feel satisfaction as the country’s capital market is truly well-established. “Its advancement couldn’t be thwarted in any way.” The Finance Minister said Bangladesh’s capital market got recognition and its position has been enhanced in the world. “We’ll continue the existing commission for the next two years and we hope when its tenure will expire, a true security market will be established in the country and we could feel proud of it,” he said. Recently, the Chinese consortium of the Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) started its journey in Bangladesh as a strategic partner of the Dhaka Stock Exchange (DSE) after receiving 25 percent shares. Stock brokers and shareholders of demutualised DSE sought gain tax waiver for investing Tk 947 crore, which they got from the Chinese consortium. (Inputs taken from BSS, UNB)

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