A high-stakes policy dialogue on Bangladesh's capital market was held on Saturday at the DSE Tower in Nikunja, drawing in heavyweights from across the country's political, financial, and regulatory corridors.
The event titled "Capital Market in Bangladesh's Political Discourse: Philosophy and Practice', hosted by the DSE Brokers Association of Bangladesh (DBA), isn't just another roundtable. It's being seen as a litmus test for how seriously the country's upcoming leadership-and its regulators-plan to tackle a capital market in visible crisis.
Keynote speaker Dr. Debapriya Bhattacharya, member, CPD Board of Trustee and the CPD's distinguished fellow said the capital market can't function alone. It needs its associate bodies working in sync. The problem isn't personal-it's structural," he declared, pointing to the absence of creative alignment between regulators and investors. He accused past political syndicates of manipulating the market with impunity, calling that culture of unpunished abuse "the biggest reason behind today's stagnation."
Capital market's share of GDP drastically declined to 13 percent from earlier highest 23 per cent. "It's falling fast," he warned. "Stock companies aren't getting support. Surveillance is outdated. The DSE is trying to update its tools, but market confidence is low." He demanded foreign experts where local expertise fails, and stressed that capital markets are "not short-term games-they're long-term investments."
With a regime shift underway and growing calls for transparency, every speaker brought urgency-and political weight.
Former Commerce Minister and member, Standing Committee of Bangladesh Nationalist Party (BNP) Amir Khasru Mahmud Chowdhury as special guest, called for "political ownership" of the capital market. "Globally, over $100 trillion is allocated through capital markets. Ours barely makes a dent," he said. He demanded diversified investments, transparency from brokerage houses, and warned against the false shelter of floor prices. "We need to monetize new sectors. If we come to power, we'll take ownership."
Md. Mohsin Chowdhury, Commissioner of the Bangladesh Securities and Exchange Commission (BSEC), struck a cautious but optimistic tone. "We're working on restoring confidence," he said, noting long-term goals to institutionalize the market and realign its direction.
On the academic side, Professor Dr. Sayema Haque Bidisha, Pro Vice Chancellor, University of Dhaka linked the absence of institutional investors to market flaws. "Capital markets must appear in the national budget-not just in theory. Tangible steps and full automation are essential," she said.
Islamic finance also found a strong voice through Md Mubarak Hossain, member, central executive council, Bangladesh Jamaat-e-Islami. He said, "Shariah-based investments are not just valid-they're effective," he insisted, referencing past practices like interest-free call money from Islami Bank. "The Zakah system and Islamic governance can drive our economy."
Professor Mushtaq Husain Khan, member, Anti-Corruption Reform Commission of the Interim Government took a hard line on regulatory manipulation. "Whenever regulations don't suit the wrong people, they change the rules," he said, highlighting how insiders rig the system to their benefit while investors are left in doubt.
From the private sector, Ifty Islam, Chairman, Asian Tiger Capital Partners pointed out the capital market's near-invisibility to foreign investors. "Our foreign footprint is negligible," he noted. Mahtab Uddin Ahmed, President, ICMAB added, "Only 1 percent of stockholders make money. But automation can raise the numbers. Dr. M. Masrur Reaz, Chairman and CEO, Policy Exchange Bangladesh called out the structural damage. "Our national economic plans ignore the capital market. We're not meeting our private investment targets. Banks alone won't bridge the gap-capital markets must step up."
DSE Chairman Mominul Islam spoke briefly on how the board is strategizing new financial mechanisms, while Chittagong Stock Exchange's President, AKM Habibur Rahman demanded justice for past manipulation. "Without punishing the culprits, there's no fixing this market."
New political outfits joined the call too. National Citizen Party's Joint Convener Dr. Tajnova Jabeen promised "practical steps, not theory," and a new corporate culture to support inclusive economic growth.
Industry analysts are closely watching. Reform in this space won't just revive investor confidence-it may reveal the incoming government's real economic intent. As momentum builds, one thing is clear: the capital market is back in the political spotlight, and the room for lip service is quickly running out.
