Bangladesh’s capital market cannot achieve sustainable growth by relying solely on retail investors. A stronger mutual fund sector and greater participation by institutional investors are essential to its long-term development, Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan has said.
He said greater institutional investment, particularly through mutual funds, was needed to make the market more dynamic, sustainable and investor-friendly.
Khan made the remarks at a consultation meeting on Wednesday at the BSEC office in Agargaon, Dhaka, where stakeholders discussed possible changes to the Bangladesh Securities and Exchange Commission (Mutual Fund) Rules, 2025.
The BSEC chairman said stakeholders’ views would play an important role in reviewing the regulations. The commission would consider international best practices and recommendations from market participants before making necessary amendments.
He assured stakeholders that the commission would not take any unreasonable or unjustified decisions in revising the rules.
Beyond regulatory changes, Khan stressed the need to improve investment education and financial literacy to support the capital market’s long-term development.
Investors needed better financial knowledge, greater awareness and the ability to make informed investment decisions. He called on BSEC, capital market institutions and other stakeholders to work together to improve financial literacy, he said.
The meeting began with a presentation by BSEC Investment Management Division Executive Director Md Mahmoodul Hoque, who outlined key provisions of the existing mutual fund rules and areas where amendments could be considered.
Representatives of the Dhaka Stock Exchange, Chittagong Stock Exchange, Central Depository Bangladesh Limited, mutual fund trustees, asset management companies, custodians and other capital market institutions presented their views and recommendations.
The discussions focused on making the regulations more effective and practical to protect investors’ interests, develop the mutual fund sector and encourage greater institutional investment in the capital market.
