Foreign investors in wait-and-see mode until next election: Amir Khosru

Foreign investors are interested in Bangladesh's stock market, particularly in bonds along with the manufacturing and service sectors, but they now prefer to wait for the national election to take place before making any move, BNP Standing Committee Member Amir Khosru Mahmud Chowdhury said today.

"I am connected with many foreign investors who want to invest in Bangladesh, considering it a market with strong potential, but they are waiting for the election," he said. "Some of them manage $10 billion, and some manage $20 billion."

The leader of the Bangladesh Nationalist Party (BNP) made the comment today at an event titled "Capital market in Bangladesh's political discourse: philosophy and practice," organised by the DSE Brokers Association of Bangladesh (DBA) at the DSE building in the capital.

"We are fully committed to deregulating and liberalising the capital market."

Foreign investors are even interested in the bond market, including municipal bonds, in addition to manufacturing and services, he added.

Globally, around $100 trillion is being channelled into stock markets, most of it from sovereign funds, insurance companies, and institutional investors, he said.

"Of that, Vietnam gets $300 billion. If Bangladesh can attract $100 billion to $200 billion, it will bring a massive change to our capital market."

Bangladesh's stock market has been disconnected from the economy because it lacked political ownership, he added.

Debapriya Bhattacharya, distinguished fellow of the Centre for Policy Dialogue, presented the keynote paper at the event.

He said finance is constantly evolving, and it is necessary for regulators to understand market mechanisms in real time.

"The regulators need to be smarter than the market in which they operate. Self-regulatory measures for market actors are crucial."

He also noted that rampant manipulation has occurred in the capital market by companies, brokers, and influential individuals.

"Despite cases being filed over 18 years ago, there has been minimal progress. If the perpetrators go unpunished, investors will continue to be cheated," he warned.