Bangladesh’s share market has become a “den of robbers”, when one robber leaves, another takes their place, said Shafiqul Alam, press secretary to the chief advisor.
“Major reforms are needed in this sector. The chief advisor has also emphasised the need for such reforms,” he said today.
For all latest news, follow The Daily Star’s Google News channel. Alam made the remarks at an event titled “CMJF Talk with Shafiqul Alam,” organised by the Capital Market Journalists’ Forum (CMJF) at its office in the capital.
CMJF President Golam Samdani Bhuiyan and General Secretary Abu Ali attended the event.
Historically, those who reformed Bangladesh’s share market have always prioritised the interests of vested groups, the press secretary said.
As a result, the big players in the market have always received advantages, while small investors—who bought shares—have mostly been victims of manipulation and fraud, Alam added.
Some groups have orchestrated manipulations in the stock market in a highly organised manner, he said. “However, no government has taken strong action against them.”
It has been observed that those who intended to carry out reforms often turned out to be another group of opportunists.
Therefore, the people who will now implement reforms must be free from vested interests.
Reforms should ensure that no specific group benefits from the market, he said.
The press secretary added that the chief advisor has emphasised reforming the capital market with the help of foreign experts, which will help bring the share market up to international standards.
A three-month timeline has been set for this, he said.
Within that time, foreign experts will arrive and advise on the necessary measures, and actions will be taken accordingly, Alam said.
“Year after year, we’ve seen that those who were influential in or around the share market—or were close to influential people—have all become millionaires. That situation should not arise again. The interests of ordinary shareholders must be protected, and the chief advisor has repeatedly stressed this point.”
Explaining why foreign experts are necessary for reform, Alam said: “The share market is not rocket science that a foreigner wouldn’t understand Bangladesh’s situation. Globally, there are standard procedures and norms for the stock market.”
“Our fear is that if we appoint a local expert for reform, they might get bought by a vested group, and we won’t be able to oversee that. That’s why we are insisting on foreign experts. Such reforms have already been implemented in Sri Lanka and India. If they can do it, why can’t we?”