Supportive taxation, robust IPOs stressed for capital market growth
The tax policies should aim for product diversity in the market alongside encouraging well-performing companies to go public as well as attracting more investors, according to the DSE.
CEO Forum, a platform of chief executives from top-tier capital market intermediary firms, has called for tax policies that support the growth of the capital market.
They made the call during a meeting with the Dhaka Stock Exchange (DSE) chairman on Monday.
The tax policies should aim for product diversity in the market alongside encouraging well-performing companies to go public as well as attracting more investors, according to the DSE.
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After the meeting, EBL Securities Managing Director Md Sayadur Rahman, the president of CEO Forum, told The Business Standard that tax policies have an important role in influencing the plans and moves of entrepreneurs as well as investors.
As stock listing helps increase companies' contribution to the national exchequer, the difference in corporate tax between publicly listed and private companies should be wider. Tax incentives also would help accelerate product diversification, he added.
A healthy capital market can be achieved if more companies raise capital from the investors to enhance their growth, contribute more to economic development and pay more dividends to the shareholders, said Rahman, who is the former president of the Bangladesh Merchant Bankers Association.
The CEO Forum which includes over two dozen institutional brokerage CEOs executing around 70% of the daily stock market transactions also urged for an end to the equity-centricity of the capital market, weaker companies listing and frequent regulations change.
DSE Chairman Hafiz Muhammad Hasan Babu, who presided over the meeting, said to address the issues, the bourse would consult with the Bangladesh Securities and Exchange Commission and relevant government authorities.
