DSE Urges Central Bank Support for Capital Market Reforms

The Dhaka Stock Exchange (DSE) has urged the Bangladesh Bank (BB) to support a series of structural and technological reforms designed to strengthen the capital market, improve liquidity and safeguard shareholder interests. 

The proposals were discussed during a high-level meeting between a DSE delegation, led by Chairman Mominul Islam, and Bangladesh Bank Governor Md Mostaqur Rahman at the central bank headquarters on Thursday.

According to a press release, the DSE presented a set of recommendations aimed at modernizing the market to align with international standards. 

Key proposals included extending the operational hours of the Real-Time Gross Settlement (RTGS) system, shortening the securities settlement cycle from T+2 to T+1 and simplifying procedures for Non-Resident Investor's Taka Accounts (NITA) to encourage foreign investment. 

The exchange also proposed a phased liquidation of its Fixed Deposit Receipt (FDR) and Special Notice Deposit (SND) accounts to independently finance technological upgrades.

Additional recommendations featured the introduction of refinancing facilities for IPOs and the bond market, expanding the secondary market for government securities and launching Sukuk trading. 

The DSE also requested direct access to Credit Information Bureau (CIB) reports to bolster risk assessment and oversight.

A significant portion of the dialogue focused on the ongoing merger of five Islamic banks: First Security Islami Bank PLC, Social Islami Bank PLC, Global Islami Bank PLC, Union Bank PLC, and EXIM Bank PLC. 

The DSE expressed concerns that general shareholders could face losses or ownership dilution without fair compensation. 

The delegation urged the central bank to ensure transparency and protect small investors from the burden of alleged financial irregularities and mismanagement within those institutions.

Governor Md Mostaqur Rahman assured the delegation that the central bank would prioritize reviewing these concerns and take necessary measures where appropriate. 

The DSE noted that successful implementation of these reforms would restore investor confidence, enhance market liquidity, and build a more sustainable, internationally competitive financial system in Bangladesh.

The DSE delegation included directors Syed Hammadul Karim, Snehasish Barua, Minhaj Mannan Imon, Richard D. Rozario, and Md. Sazedul Islam, alongside Managing Director Nuzhat Anwar.