Regulator asks DSE to improve its IT platform
The Bangladesh Securities and Exchange Commission (BSEC) has ordered the country's premier bourse to improve its IT services so that investors can easily trade their stocks online.
The existing online trading platform of the Dhaka Stock Exchange is problematic as investors are often unable to view updated data on stocks and trade, which is a cause for concern, said Professor Shibli Rubayet Ul Islam, chairman of the BSEC.
"Therefore, it should be fixed to ensure better services for investors," he added.
Islam made these comments while addressing a virtual programme styled, 'Dealing with investors', held by the DSE yesterday to observe World Investor Week, an initiative of the International Organization of Securities Commission.
The DSE needs to ensure proper digital trading facilities for all stock brokers so that investors can trade at anytime from anywhere in the world, said Islam.
"We have to deal with all the investors and issuers in a way that boosts their confidence in the capital market."
As a part of its efforts to boost investor confidence, the market regulator took the initiative to improve junk stocks by granting quick approvals for initial public offerings, issuing bonds and returning money that was raised through debentures.
"But please give us more time considering our low manpower as we aim to turn the country's stock market into a modern one within the next two years," the BSEC chairman said.
Turnover, an important indicator of the market, currently hovers around the Tk 1,000 crore mark but the BSEC intends to increase this value to Tk 1,500 crore within the current year, he added.
Bangladesh needs huge investment in the coming years to achieve the government's development goals and this may impact the stock market, said DSE Chairman Eunusur Rahman.
And so, market capitalisation will increase significantly by 2030.
But to meet the country's targets, stocks need to be diversified while trading on IT platforms should be prioritised as well, he added.
The DSE chairman also recommended that steps should be taken to list foreign multinational companies with the country's bourses in order to boost the local stock market.
Rokibur Rahman and Sanaul Hoq, director and managing director of the DSE respectively, were among others who spoke at the event.
In a separate event organised by the BSEC on Monday, Islam said they have rusticated the directors who did not hold at least a 2 per cent stake in their own company.
Now, the BSEC has turned its sights to take action against companies where the directors do not collectively hold a 30 per cent stake.
"For the sake of the betterment of general investors, we will do it," he said, adding that the market needs more participation from institutional investors.