Policy reform needed to bring new companies to capital market: ICB chief

Investment Corporation of Bangladesh (ICB) Chairman Abu Ahmed has called for urgent policy reforms to attract new companies to the capital market. 

If companies were given proper incentives, they would opt to raise funds from the public through the stock market instead of relying solely on bank loans, he said while speaking at a Baishakhi fair, organised by ICB Capital Management, at ICB head office in Motijheel on Tuesday (10 April).

Emphasising the government's role in initiating reforms and facilitating the listing of new companies, Abu Ahmed said, "We need to identify what these IPO-ready companies require and what benefits would motivate them to enter the market. This is how we can gradually attract large local and foreign firms to the stock market."

Cautioning investors, he said, "There are about 380 listed securities, including mutual funds, but not all are suitable for investment. Don't invest based on hearsay or advice from others. Avoid gambling traps. Be a real investor — honesty is the key to surviving in the capital market. If you're dishonest, the market will eat up your money."

ICB Managing Director Niranjan Chandra Debnath said, "The capital market is a vital part of our economy, but it has faced repeated setbacks. However, we're hopeful about the future, as the interim government appears to be focusing more on market reforms. Initiatives like the capital market task force are positive signs."

He added, "We need to approach the market with patience. Instead of staying in trading mode all the time, we should focus on long-term investment. Like any other business, the market has ups and downs, and investors must develop the mindset to accept that."

ICB Capital Management CEO Mazeda Khatun highlighted the often-overlooked role of merchant banks in the capital market. 

"To bring quality securities to the market, merchant banks must be given due importance. Since the inception of the Dhaka Stock Exchange, brokers have been at the forefront, but ICB has been working consistently in this space. Today's event aims to spotlight the role of merchant banks," she said.

She also introduced a new investment product called TIP (Targeted Investment Plan). "People often think capital markets are only for investing large sums of money. Despite our huge population, most people remain outside this ecosystem. With TIP, individuals can start investing with just Tk1,000 and also enjoy tax rebates. The product is managed by a team of experts to ensure investor security."