2024-05-23 02:57:27
Prime Minister Sheikh Hasina has directed to take efficient steps to listing potential state-owned enterprises (SOEs) or authorities companies and firms within the capital market. On the similar time, he directed the Finance Division of the Ministry of Finance to strengthen the nation’s capital market by growing the availability of basic shares. Capital market stakeholders are taking a look at this directive given by the Prime Minister on the assembly of the Government Committee of the Nationwide Financial Council (ECNEC) on Could 9.
Nonetheless, the Dhaka Inventory Trade (DSE) has been working below the management of the regulatory physique Bangladesh Securities and Trade Fee (BSEC) to listing authorities corporations within the capital market for a very long time. Because of the unwillingness of the federal government corporations, regardless of a number of makes an attempt, it was not doable to carry them to the capital market. Lastly, the Prime Minister ordered the enrollment of presidency establishments with far-reaching plans to hurry up the financial system by way of the capital market. Due to this fact, DSE desires to help the Finance Division to implement this directive of the Prime Minister. In response to DSE sources, a number of initiatives have been taken in continuation of this.
4 days earlier than the Prime Minister’s directive, i.e. on Could 5, DSE wrote to the Finance Division asking them to arrange an consciousness program for itemizing authorities corporations within the capital market. DSE desires to arrange this to debate varied problems with itemizing within the capital market with the representatives of the federal government corporations. DSE continues to liaise with the Ministry to work on this. DSE authorities stated that this consciousness program could also be organized subsequent week.
In the meantime, the Prime Minister has directed the Finance Division to work on which potential authorities establishments might be dropped at the capital market to make the market aggressive. On the similar time, potential authorities corporations have been requested to bear correct screening and choice earlier than itemizing within the capital market. The Finance Division will ship the report back to the Prime Minister to finalize the matter. DSE desires to help the finance division by giving proposals on this work. The administration of DSE has been tasked with easy methods to make suggestions. On the similar time, DSE has requested DSE Brokers Affiliation of Bangladesh (DBA) and Bangladesh Service provider Bankers Affiliation (BMBA) to offer proposals on this regard. The proposal on this regard will probably be despatched to the finance division quickly. DSE will collectively help the Finance Division on this regard.
Capital market stakeholders say that authorities establishments needs to be introduced into the capital market to strengthen and stabilize the capital market. Itemizing of corporations with sound fundamentals will contribute enormously to the soundness of the capital market. In addition to, the federal government’s accountability in the direction of the capital market will enhance. It will cut back the mismanagement of presidency corporations to a big extent. Accountability in corporations will enhance transparency and accountability. Public corporations needs to be listed within the curiosity of the capital market and to extend transparency. On this, loss-making authorities corporations will return to revenue. Traders will profit from this.
In response to DSE knowledge, solely 20 authorities corporations are listed within the capital market. Their market capitalization is 7.81 %. The final authorities establishment was listed within the inventory market in 2012. After that, varied initiatives had been taken, however nothing labored. The listed corporations within the capital market are – Atlas Bangladesh, Bangladesh Companies Restricted (BD Companies), Bangladesh Submarine Cables Firm (BSCCL), Bangladesh Delivery Company (BSC), Dhaka Electrical Provide Firm (DESCO), Japanese Cables, Japanese Lubricants, Funding Company of Bangladesh ( IBC), Yamuna Oil, Meghna Petroleum, Nationwide Tubes, Padma Oil, Energy Grid Firm of Bangladesh Restricted, Renwick Yajneshwar, Rupali Financial institution, Shyampur Sugar Mills, Titas Gasoline, Osmania Glass Seat Manufacturing facility and Zilbangla Sugar Mills.
Dhaka Inventory Trade Chairman Professor Dr. Hafiz Muhammad Hasan Babu advised RisingBD that state-owned enterprises needs to be listed together with good corporations to extend the depth of the capital market. Which has not been in our capital market for a very long time. The Prime Minister’s current order to listing authorities corporations for capital market growth is a landmark step. DSE has been working since earlier than the Prime Minister’s directive on this regard. We now have already despatched a letter to the Finance Division of the Ministry of Finance asking them to arrange an consciousness program for itemizing authorities corporations within the capital market. I hope to have the ability to set up this program subsequent week. In addition to, the DSE will help the finance division by making proposals in vetting potential authorities corporations that could be listed on the capital market. That’s the reason DSE Administration, DBA and BMBA are working collectively. DSE will present every kind of cooperation on this regard.
Abu Ahmed, a capital market analyst and former professor of economics at Dhaka College, advised RisingBD that the directive given by the Prime Minister to listing authorities corporations within the capital market is a really sensible order. Those that impede this work needs to be introduced below punishment. Then every thing will probably be fantastic. A number of state-owned enterprises had been listed within the capital market throughout the caretaker authorities. Now there may be solely an absence of goodwill. The Prime Minister ought to say that those that won’t cooperate on this work will probably be introduced below punishment. Then inside six months new authorities corporations will probably be seen within the capital market. Authorities corporations will give varied excuses to not be listed within the capital market. On this case, the Prime Minister and the Ministry of Finance have to be strict. There are numerous state-owned corporations, which aren’t worthwhile as a result of being below the federal government. 51 % shares of these corporations needs to be offered to the general public. Consequently, there will probably be extra participation of shareholder representatives within the possession or board of administrators of these corporations. Then authorities corporations will be unable to stay in loss even when they need to. Firms which are listed within the inventory market, have to dump or offload a bigger portion of their shares to the general public.