Institutional investors need to build confidence in the capital market

He was speaking at the opening ceremony of the Beximco Green Sukuk bond transaction at the Dhaka Stock Exchange (DSE) Multipurpose Hall on Thursday (January 13th).

Salman F Rahman said, ‘Institutional investors contribute the most in a stable market. The participation of retail investors is low. But here we have the opposite. Here the investment from retail investors is more, while the participation of institutional investors is less. As a result, the capital market is based on rumors. Institutional investors should manage the portfolio of retail investors. Managing the portfolios of new investors will reduce the complexity of ups and downs in the capital market. Institutional investors need to build confidence in the capital market. '

"The bond market is stronger than the equity market in all stock markets in the world," he said. The bond market is larger or equal to the equity. But here we have the opposite. Now new products are coming. There is diversity in the capital market. But we do not have that in our market.

Salman F. Rahman said, "When Sukuk was being considered, we thought that ordinary investors would respond. But in reality, such bonds were not received much response in the capital market as they were new. However, there has been a response from institutional investors.

"The next general investors are also interested," he said. While it was thought that the bank's interest rate would be raised to nine and six, there were fears among traders in the sector as to how helpful it would be for business. But it has been implemented on the instructions of Prime Minister Sheikh Hasina. It is not seen now and the bank is doing good business at interest rates of six percent.

Regarding the initiative to issue bonds, the adviser to the Prime Minister said that not only Beximco Sukuk, but also Dhaka City Corporation is taking the initiative to issue bonds. Three bonds are being issued by North City Corporation and two by South City Corporation.

Speaking as the special guest, Prof. Shibli Rubaiyat-ul-Islam, Chairman, Bangladesh Securities, and Exchange Commission (BSEC), said, "No matter what the obstacles are, we will continue to do new things. Blue Bond and Green Bond are coming in front of us. We are working on some derivatives, it will come."

The BSEC chairman said, "The dream we have for our economy is slowly coming true. Our government, ministries, and businessmen are now moving forward with great courage. Now we want one thing from our people, public and everyone, is we need stability, the rest can be taken forward by the public-private sector.

DSE Chairman Yunusur Rahman presided over the function and DSE MD Tareq Amin Bhuiyan was present.