The DSE Brokers Association on Tuesday said that lack of transparency and accountability were the major barriers to growth in the capital market.
DBA president Md Saiful Islam made this remark at a press conference in the capital on the day, addressing the proposed national budget and the current market decline.
Following finance minister Abul Hassan Mahmood Ali鈥檚 budget proposal on June 6, the DSEX, Dhaka Stock Exchange鈥檚 key index, fell by 167.29 points over the past three trading sessions.
Saiful Islam noted, 鈥楾he market has been struggling since the 2010 debacle and we lost a generation of investors over the last decade due to failure to create a stable market.鈥�
He pointed out that despite demutualisation of the stock exchange in 2013, which aimed to develop the DSE and improve market conditions, no significant improvements had been observed.
He emphasised the need to review the demutualisation act and scheme as they had not yielded desired results.
He also mentioned that investors were losing trust and confidence due to governance issues in the market. The recent news of regulatory body officials investing in the market was particularly embarrassing and warranted investigation, he said.
In addition to governance problems, the market is also suffering from a lack of initial public offerings and high-performing companies.
Despite various government initiatives, state-run companies have not been listed on the market.
The DBA president called for a proper roadmap for listing these state-owned enterprises.
Saiful requested to give incentives so that good companies enlist on the market.
The finance minister鈥檚 proposed 15 per cent tax on capital gains in the national budget for the 2024-25 financial year that has contributed to the recent market decline, he said. Saiful urged the government to exempt investors from the capital gain tax for one year.