Corruption cannot happen without the blessing of the regulatory body, said Rupali Haque Chowdhury, president of the Bangladesh Association of Publicly Listed Companies.
Speaking at the ‘CMJF Talk’ organised by the Capital Market Journalists Forum in Dhaka on Sunday, Rupali Haque, also the managing director of Berger Paints Bangladesh Limited, underscored the need for strict action against corruption.
‘The licenses of audit firms and rating agencies that aid irregularities in companies should be cancelled to set an example,’ she said.
She stressed that the regulatory body must ensure wrongdoers are held accountable. ‘Inaction only emboldens them,’ she added.
Addressing business challenges, she noted that many multinational companies remain unlisted due to insufficient incentives. The Companies Act imposes stricter regulations on listed firms, and the previous 15 per cent corporate tax gap between listed and unlisted companies has been narrowed.
‘The law should be reviewed to create a level playing field. Listing should offer meaningful benefits beyond tax advantages,’ she said.
Without incentives, companies will avoid IPOs and opt for easy bank loans, despite high interest rates she added.
Large companies are doing well, but SMEs are struggling. About 30 per cent of SMEs are linked to the banking sector, yet they lack sufficient funding. Despite ambitious plans, they receive little attention from banks, she said.
She identified the Ukraine war and domestic political instability as additional factors affecting investment.
To attract investors, she called for stronger financial policies, particularly in revenue and infrastructure. She pointed out that poor road conditions extend lead times in Bangladesh compared with other countries.
She also expressed concern over the impact of supplementary duties and VAT imposed at the beginning of the year, which, she said, are hurting business profitability.
CMJF president Golam Samdani Bhuiyan presided over the event, with general secretary Abu Ali and others in attendance.