IMF offers support in law, policy issues to improve stock market capital inflow: BSEC chairman
The IMF mission also asked about what developments took place in the market in the past year.
The visiting International Monetary Fund mission has said it would support any law or policy related matters to improve capital inflow to the stock market.
Speaking to The Business Standard on what discussions took place with the IMF mission, Bangladesh Securities and Exchange Commission (BSEC) Chairman Professor Shibli Rubayat-Ul-Islam said the IMF had wanted to know why the market was in a downtrend.
"We said there was a dollar crisis resulting in a liquidity shortage. We informed them that if the dollar rate falls then there would be more capital inflow," he said.
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The IMF mission also asked about what developments took place in the market in the past year.
They further asked about the new products in the securities market, such as in the bond and equity markets, Professor Shibli said.
The IMF team is currently visiting Dhaka to review the implementation status of the conditions attached to the $4.7 billion loan it approved for Bangladesh in January this year.
The visiting mission of the International Monetary Fund (IMF) today inquired about the recent low turnover in the country's stock market.
The BSEC chairman said he told the IMF team that the turnover in the stock market has been running low due to liquidity shortage caused by inflationary pressure.
He further said the IMF wanted to know the development of the country's capital market in the last one year since its last meeting with the BSEC.
"This delegation met with us a year ago, they wanted to know what progress we have made since that meeting. We told them about our progress.
"I have asked for their cooperation in some matters. In particular, a large fund support was also sought. I said, if we get this cooperation, it will be much easier to do our future work," he said.
The team also inquired about the new instrument of the share market that was introduced in recent times.
In reply, the BSEC chairman briefed them about the new products and current scenarios of the market.
According to BSEC sources, the IMF meeting focused on current market conditions, new laws and regulations, green bonds and universal pension schemes.
