Chief adviser Muhammad Yunus on Sunday asked the Bangladesh Securities and Exchange Commission to undertake urgent reforms in the capital market, bringing foreign experts to reform the market and bring stability within the next three months.
The directive came during a high-level meeting held at the Chief Adviser鈥檚 Office on the day where Yunus met with BSEC chairman Khondoker Rashed Maqsood in the wake of a prolonged slump on the stock market since Maqsood assumed office, according to CA鈥檚 press wing and BSEC officials.
The chief adviser issued five specific directives to the market regulator, underscoring the gravity of the situation and the need for swift, structural intervention, they said.
Yunus tasked the BSEC with immediately initiating a framework to bring in foreign consultants with proven expertise in capital market reform and regulation.
He said that other relevant government agencies would extend their cooperation to facilitate the process.
In an effort to deepen the market and attract quality listings, the chief adviser instructed the BSEC to begin process of listing profitable state-owned enterprises as well as companies with partial government ownership, such as Unilever Bangladesh, on the stock exchange.
He noted that the government should consider reducing its stake in these companies, if necessary, to facilitate public listing.
Additionally, Yunus called on the commission to identify large, well-performing private sector companies operating in Bangladesh that had so far refrained from going public.
The BSEC has been asked to engage with these firms, assess their concerns and offer tailored incentives 鈥� fiscal, regulatory or otherwise 鈥� to bring them into the stock market.
The chief adviser also raised concerns over companies with large loan portfolios that continue to rely heavily on bank financing instead of raising capital from the equity market.
He urged the BSEC to create mechanisms that would encourage such companies to shift towards market-based financing.
Finally, in a firm tone, Yunus instructed the BSEC chairman to take uncompromising actions against market manipulators and financial wrongdoers, regardless of their political affiliations or connections.
No pressure from any corner should deter the commission from safeguarding market integrity, he reportedly said.
The meeting comes against the backdrop of mounting criticism over the BSEC鈥檚 performance under Maqsood鈥檚 leadership.
The stock market has been on a steady decline for months, with the key index losing investor confidence amid growing concerns over regulatory inaction, market operators said.
Market data revealed that a staggering 74,000 investors had liquidated their portfolios entirely since September 2024, underscoring a collapse in sentiment amid stagnant reforms and deteriorating liquidity conditions.
DSEX, the key index of Dhaka Stock Exchange, plunged to 4,902.27 points on May 8 from 6,015 points on August 11, 2024. During the period, the investors lost about Tk 61,000 crore from their total stock market investment.
Recently, small investors staged demonstrations at Motijheel in the capital, demanding resignation of the BSEC chairman. Protesters accused the commission of failing to protect retail investors.
Trading volumes have collapsed, pushing many brokerages towards insolvency, while retail investors 鈥� once a driving force on the market 鈥� are abandoning equities altogether, market operators said.
There exists increasing dissatisfaction among investors, brokers and market analysts, who argued that the BSEC lacked both direction and the will to enforce compliance, they alleged.