Listing may solve SME fund crisis: SME Foundation chairman
The SME sector gets Tk180,000 crore bank loans against a demand of around Tk540,000 crore
The Dhaka Stock Exchange (DSE) and the SME Foundation have signed a memorandum of understanding (MoU) to create the opportunity to list small capital companies in the SME platform of the stock exchanges.
On Monday, the signing ceremony was held at the DSE building in the capital.
Dr Md Mofizur Rahman, managing director of SME Foundation, and Tarique Amin Bhuiyan, managing director of DSE, signed the MoU on behalf of their respective organisations.
Keep updated, follow The Business Standard's Google news channel
Dr Masudur Rahman, chairperson of SME Foundation, was the chief guest at the event while the DSE chairman chaired it.
SME entrepreneurs will now get to know about the SME platform and the importance of being listed in it.
Both organisations will be able to create awareness among entrepreneurs to get listed in the platform, said a press release.
Besides, they will work jointly to support SME entrepreneurs through programmes and seminars.
Mofizur said the capital raised from the capital market through the SME platform would create a new era in this sector.
It has to be implemented properly, he said.
Masudur said the main problem of SME entrepreneurs was fund crisis.
He said the SME sector gets Tk180,000 crore in bank loans against a demand of around Tk540,000 crore.
The Bangladesh Securities and Exchange Commission (BSEC) had formulated policies prioritising SME entrepreneurs that could solve the crises in this sector, he said.
"The SME sector's contribution to the economy is 60% in India, 70% in China and Japan, but only 25% in Bangladesh. The SME Foundation is working to increase the proportion," he added.
SME companies can now raise Tk5 crore to Tk30 crore through the SME platform from the capital market to expand business.
The platform was formed in 2019 to attract small-cap businesses to the stock market.
With a view to making the small capital board active, the BSEC wanted to list some companies on the board within a short time.
But in the primary stage, stakeholders did not get a good response from SME entrepreneurs and their issue managers.
According to them, the rules for small capital companies should be short and simple.
Small entrepreneurs are not as capable as listed companies to comply with all the rules.
After that, the regulator approved QIO proposals of a few firms for the SME platform.
