Finance Adviser Salehuddin Ahmed announced during a discussion at the Dhaka Stock Exchange (DSE) that the interim government of Bangladesh will provide incentives to encourage large private and public firms to list in the stock market.
Ahmed said that good companies are typically reluctant to enter the stock market as their owners prefer to keep management positions within their families, thereby retaining most profits. Listing on the stock market would require these companies to adopt better corporate governance and allow shareholders to influence key decisions, which many firms want to avoid.
Ahmed stressed the need to deepen the stock market by bringing in reputed companies. He suggested that policy support, including tax benefits, could help achieve this goal. The government is already working on listing several public companies to boost market depth.
The finance adviser also urged relevant authorities, including the DSE, to encourage investments from expatriate Bangladeshis, citing the Indian stock market’s success in attracting non-resident investors. He noted that many non-resident Bangladeshis have the means to invest in the domestic stock market but need to be drawn in through attractive policies.
Regarding ongoing reforms, Ahmed said the government’s efforts to strengthen the stock market could cause temporary disruptions but are essential for long-term stability. He also pointed out that an economy heavily reliant on bank loans is not sustainable, underscoring the importance of a robust capital market.
