Investors urge parties to include market reform pledges in manifestos
Investors call on parties to commit to capital market reforms, warning that prolonged decline and weak regulations have eroded confidence
Ahead of the upcoming national election, capital market investors have urged political parties to include clear, time-bound commitments on capital market reforms in their election manifestos.
The Bangladesh Capital Market Investors Association (BCIA) placed the demand in a memorandum submitted to Bangladesh Bank Governor Ahsan H Mansur on Wednesday, following a human chain programme in front of the Dhaka Stock Exchange building in Motijheel.
In the memorandum, the association said Bangladesh's stock market was effectively pushed into an "ICU" on 6 December 2010 during the tenure of the then Awami League government.
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They claimed the market remained in prolonged distress until the government's fall on 5 August 2024 and that no meaningful recovery has been visible even under the current interim administration.
They alleged that, in the name of reform, the Bangladesh Securities and Exchange Commission has turned investors into victims of what they termed "economic genocide", arguing that regulatory decisions have deepened the market's fragility rather than restoring stability.
According to the memorandum, when the interim government assumed office on 11 August 2024, the benchmark DSEX index stood at 6,015 points. By 18 December 2025, it had fallen to 4,850 points, marking a drop of more than 1,150 points in 17 months.
Over the same period, average daily turnover declined sharply from around Tk1,400–1,500 crore to roughly Tk350 crore. Investors also noted that the market's price-to-earnings ratio has fallen below 9, which they described as unprecedented by global standards.
The investors warned that without restoring confidence among both local and foreign investors, injecting fresh funds into the market would be futile. Even injecting Tk10,000 crore would fail to revive the market and would only further embarrass the government, they said.
They further alleged that over the past 17 months, the BSEC, Bangladesh Bank and the National Board of Revenue have failed to introduce any effective incentive measures for the capital market.
As an example, they cited the merger of five banks without following international standards, which they said caused severe distress to depositors and shareholders. They also alleged that no attractive and credible company has entered the market through an initial public offering during this period.
To revive the market, the association submitted nine other proposals to the authorities. It called for banning the use of the same shares for netting in daily trading and ensuring parity between the Bangladesh Bank governor and the BSEC chairman.
Shareholders affected by the five-bank merger should receive fair compensation, while major profitable entities – including the Padma Bridge project and multinational companies – should be listed.
Companies seeking more than Tk50 crore in funds must raise capital through the stock market. Directors' shares should be frozen, and boards of underperforming companies restructured.
A strong advisory committee should be formed to enhance BSEC transparency, and leadership appointments at key institutions should follow a merit-based process. Fresh funds from the Investor Protection Fund should be allocated to compensate investors who have suffered losses since 2010.
