Former DSE chief Shakil Rizvi wants good companies on bourses

Former DSE president Shakil Rizvi has called for concrete action by the government and regulator SEC to draw ‘good companies’ into the share market to boost investment of idle money.

The former Dhaka Stock Exchange chief says an estimated Tk 200 billion is lying idle.

“This money will enter the market if the good companies come into the bourses,” he told bdnews24.com on Monday in an interview.

When asked about the frustration of the investors due to the current condition of the capital market, Rizvi said: “The market falls whenever little bad things happen and when the market is full of bad companies.

Shakil Rizvi (File Photo)

“But good companies work as the pillar of the capital market and strengthen it,” he added.

What are the good companies?

For Shakil Rizvi, good companies are companies with good management, paid-up capital, revenue, and preferably multinational.

“Is it possible for a multinational bank to remain unlisted in other countries?  So why in Bangladesh is Standard Chartered and Citbank not listed- these banks should be brought into the market,” he said.

According to Shakil Rizvi, the shares of good companies play a key role in retaining investors trust in the market because their prices never fall.

“Even after some many drops, a Tk 10 Bata share has not come down to Tk 50. It has remained at Tk 1100,” he said.

The ex-DSE boss urged the Securities and Exchange Commission to create a proper environment for annual general meetings of the good companies so that they get some courage to hit the market.

“In many cases, people berate these companies. The good companies won’t come if that continues,” he said.

Shakil Rizvi called for easing the ‘complicated’ rules and demanded an end to the rule that calls for compulsory enlistment on both Dhaka and Chittagong Stock Exchange.

“Why a company will spend in two places?” he asked.

He also wondered why the life and general insurance companies were not being listed on the market despite the rule saying insurance companies must to be listed if they have been operating for more than three years.