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Published : 14 Jul 2025, 10:19 PM
A recent workshop in Dhaka has highlighted looming concerns in the capital market, despite a recent uptick in transactions and the renewed investor confidence over the past week.
Speaking at the event titled “Capital Market Restructuring and Realities,” DSE Brokers Association (DBA) President Saiful Islam warned that the lack of new company listings for over a year could lead to the formation of another "bubble" within the next year.
A capital market bubble occurs when asset prices -- stocks or bonds -- inflate far beyond their true value, fuelled by investor hype rather than economic fundamentals.
“Without a new supply of quality shares, there is a strong possibility of a crisis in the future,” he warned.
He also urged the regulatory authorities to avoid listing politically-backed or low-quality companies.
The workshop was hosted on Monday at Paltan’s Economic Reporters’ Forum auditorium.
Dhaka Stock Exchange (DSE) Chairman Mominul Islam said efforts are under way to bring at least 10 new Initial Public Offerings (IPOs) within the next year to revitalise the market.
Meanwhile, AKM Habibur Rahman, Chairman of the Chittagong Stock Exchange (CSE), stressed that without political stability, foreign investment will remain stagnant.
BNP Standing Committee Member Amir Khosru Mahmud Chowdhury, attending as a guest speaker, promised that if BNP comes to power, there will be no political appointments in financial regulatory institutions like the Bangladesh Bank or the capital market authorities.
He claimed that no major scandals occurred in the banking or stock sectors during BNP’s tenure, and said continued political interference would only perpetuate the sector’s problems.
He added that the economy needs to be democratised just like politics to increase financial activities. He also criticised excessive regulatory control and the lack of a strong self-regulation system, which is hampering the market.
Khosru added that the capital market’s development cannot rely solely on offering IPO opportunities to a few good companies.
“Unless there’s a fundamental change in the country’s political culture, meaningful reforms won’t be possible,” he said, pledging to strengthen both the economy and capital market under BNP rule.
He also blamed the lack of transparency and accountability for deterring foreign investors and called for coordinated, realistic reforms by all stakeholders to rebuild investors’ trust.
Khosru said tax incentives alone will not be enough to make listings attractive to new companies.
