If elected, BNP to prioritise stock market: Amir Khasru

The Awami League has used the stock market as a political tool, but the BNP will take responsibility for the market and implement deregulation if it forms the next government, said Amir Khasru Mahmud Chowdhury, a BNP standing committee member and former commerce minister.

"No government in Bangladesh has ever truly owned the stock market. We will own it. Investors are waiting for an elected political government, and they will make investment decisions once such a government is formed," he said while speaking at an event organised by the DSE Brokers Association of Bangladesh (DBA) at the DSE Tower today (26 February).

"Reforms are the task of a political government, not an interim one. The reform proposals were already part of the BNP's agenda, and as a party, it is committed to the people to implement these reforms," said Khasru, also the founder of the Chittagong Stock Exchange.

The event, titled "The Current State of the Bangladesh Capital Market and Way Forward," was chaired by DBA President Saiful Islam, with former Bangladesh Securities and Exchange Commission (BSEC) chairman Faruq Ahmed Siddiqi and other guests in attendance.

Addressing the programme as the chief guest, Khasru called for identifying and prosecuting those who have exploited the market over the past 15 years, warning that without legal action, they would continue their exploitative practices.

"Their [manipulators] actions have driven many to suicide and left countless others in financial ruin," he said, adding that the DBA must play a role in ensuring they are held accountable under the law.

Khasru said, "I am not speaking just for the sake of it. Our party has held internal discussions, and we are seriously considering deregulating the capital market."

He argued that "more regulation leads to more corruption," making deregulation a top priority to address one of Bangladesh's key economic challenges.

Khasru stressed that the stock exchanges must self-regulate, with the regulator acting as a watchdog rather than interfering in daily trading. He urged the DBA to take an active role in this process, adding that without deregulation, restoring transparency in the capital market would be impossible.

The BNP leader also said that the government should have no authority to interfere in the BSEC, which is meant to operate independently. "However, in past days, the BSEC has acted not as a regulatory commission but as an extension of a political party [AL]."

Zahir Uddin Swapan, a member of the BNP chairperson's advisory council and former MP, said, "The Awami League has always harmed the market with its political interference. In contrast, the market flourished under BNP rule, as the party never exploited it for political gains. If BNP returns to power, it will restore investor confidence through fair and transparent practices."

Zonayed Saki, chief coordinator of Ganosamhati Andolon, stated that elections and reforms are currently at a standstill. The election is as crucial as reforms, and the current interim government must lay out a clear plan for the elections while also implementing necessary state reforms.

"Without a clear election roadmap, investors will continue to stay away from the market, fearing ongoing volatility," he added.

Former BSEC chairman Faruq Ahmed Siddiqi said that in 2010, forced sales were halted through verbal instructions, which hurt the market.

He added that the stock market remained stagnant for one and a half years due to the floor price, possibly for political reasons. This policy prevented investors from exiting the market, ultimately eroding trust.

Faruq also said, "A short-term interim government cannot implement long-term policies. To attract investment, we need stable, long-term policies that ensure continuity; without them, no one will invest in the market."

Ahmed Rashid Lali, former president of the DBA, said that 266 BO accounts of high-net-worth investors have been frozen by the government, preventing these investors from trading through these accounts. He urged regulators to provide a trading avenue for these investors.

Saif Uddin, vice president of the DBA, said the capital market has delivered a negative return of 3% over the past 16 years, with the market shrinking by 37.6% during this period.

Out of 134 IPOs listed in recent years, 42 have been downgraded to the Z category, indicating severe financial instability. Currently, 103 out of 350 listed companies are in the Z category, reflecting poor corporate health. The introduction of the SME market has further exacerbated the issue, as many low-quality firms have entered the market, he added.

The DBA vice president also highlighted the need for IPO valuations to be market-driven rather than artificially inflated, ensuring fair pricing and long-term sustainability.