There’s a question that has been floating around for years now about Bangladesh’s capital market—will it ever really become a solid place for long-term financing, or is it just going to keep getting stuck in the same old cycle of short-term speculation and broken trust? Well, the proposed budget for 2026–27, along with a few recent policy moves, might finally offer a fresh answer.
When people talk about the Tk 9.38 lakh crore budget that was presented in Parliament on 11 June, they usually focus on revenue, inflation or social safety nets. That’s fair. But one thing that’s actually pretty striking this time is how clearly they are trying to position the capital market as a core pillar for the economy’s long-term financing needs. It’s not just about tossing out a few tax breaks or incentives.
What really stands out is the whole perspective—the way they are thinking about structural reforms.
For the longest time, Bangladesh has leaned heavily on bank loans for industrial and infrastructure projects. On one hand, that’s put a lot of pressure on the banking sector. On the other hand, the capital market has never really got to do its real job. The finance minister’s speech seemed to acknowledge this problem.
If the government actually follows through on its promise to turn the capital market into an effective tool for raising long-term capital, that could genuinely shift things for the country’s corporate sector.
Take the move to make the IPO process fully digital and up to date. That’s huge. For years, promising companies have stayed away because of delays, red tape and high administrative costs. If listing becomes simpler, more quality companies will come to the market. That’s obviously good news for investors too.
The budget also touched on alternative investment options like corporate bonds, Sukuk, infrastructure funds and even potential municipal bonds. Let’s be honest—a modern capital market cannot just run on shares alone. You need variety to give the market real depth. So these initiatives are timely, no doubt.
Now, one of the biggest talking points lately has been the end of the long-standing floor price system. That mechanism was originally brought in to keep the market stable during crises, but over time it ended up causing liquidity problems, distorting price discovery and eroding investor trust. Removing the floor price on several key shares and letting the market find its natural price again—that’s fundamentally a good thing. At its core, a market economy is supposed to work on demand and supply.
Sure, some share prices have dropped after this decision. But that’s not a sign of weakness. It’s just prices becoming more realistic. In a healthy market, realistic pricing matters far more than artificial stability. A big chunk of investors now seem to be accepting that reality.
Another key piece here is the role of the regulator. The new leadership at the Bangladesh Securities and Exchange Commission has been talking about good governance, and that’s really encouraging.
Taking a hard line against manipulation, insider trading, wash trades or artificial price hikes—that’s essential. Because confidence in the capital market does not come from assurances. It comes from the law actually being enforced.
Here’s the thing. The biggest crisis in Bangladesh’s capital market has never been a lack of money. It’s always been a lack of confidence. Plenty of small investors got burned in the past and just walked away. So whether these new reforms actually succeed depends not on announcements, but on how consistently they are carried out.
There are some good reasons to expect a positive trend in Sunday’s market. Post-budget optimism, the policy reform announcements and promises of better governance have all lifted investor sentiment. That said, we should not judge the future of the capital market based on one day’s index movement or trading volume. Real success will show itself over the coming months and years.
We also have to keep the bigger macroeconomic picture in mind. Global uncertainty, inflation, banking sector reforms and the foreign exchange market—all of it will affect the capital market. So let’s not get carried away with excessive excitement, but also, there is no reason for hopelessness either.
A mature capital market grows slowly. It needs stable policies, a strong regulatory setup, transparent corporate practices and investor confidence. This year’s budget might just mark the start of a promising chapter in that long journey.
Now, the real question is how quickly the announced reforms are actually implemented, and how well the market seizes that opportunity. Because if there is one thing the history of our capital market teaches us, it’s this: the foundation of confidence matters far more than hope. And that foundation is built on consistent good governance, transparency and accountability.
The author is a vice president at the Bangladesh-American Chamber of Commerce USA Inc. The views expressed in the article are his own and do not reflect those of any organisation.
