In “A Roadmap to Revive the Capital Market,” Kh. Asadul Islam Ripon examines the structural challenges that have held back Bangladesh’s capital market and outlines a combination of immediate measures and long-term reforms needed to restore confidence and encourage investment.
The article argues that reviving the market requires more than short-term interventions. Stronger coordination among financial regulators, improved institutional participation and a clearer policy environment are essential to rebuilding trust. It proposes establishing a Financial Sector Stability Council to improve coordination across banking, taxation, insurance, investment and capital-market authorities while preserving the independence of individual regulators.
Among the measures discussed are bringing a portion of government-held shares in multinational companies to the stock exchanges, encouraging temporary participation by state-owned commercial banks and other institutional investors, and introducing tax policies that reward long-term investment rather than short-term speculation.
The article also highlights the importance of simplifying taxation for foreign portfolio investors, creating a clearer framework for capital repatriation and improving how market performance is measured. Separate large-cap, mid-cap, small-cap and sector-specific indices could provide investors with a more accurate picture of market movements instead of relying excessively on a single headline index.
Another major area of focus is the development of Bangladesh’s bond market. Expanding the availability and trading of government securities through the stock exchanges could improve liquidity, strengthen price discovery and contribute to the development of a broader yield curve for financial assets.
Ultimately, the article stresses that sustainable capital-market growth will depend on stronger corporate governance, better enforcement, credible financial reporting, efficient settlement systems, deeper institutional participation and predictable regulation.
While targeted short-term measures could help restore liquidity and investor morale, lasting revival will require deeper markets, stronger coordination and policies that encourage patient, long-term capital.