The Dhaka Stock Exchange (DSE) and leading brokerage firms have discussed measures to revive the capital market, including introducing new products, improving surveillance, easing liquidity pressure and rebuilding investor confidence.
At a meeting with top brokerage representatives on Tuesday, DSE reviewed the current market situation, long-pending issues and possible reforms to strengthen market stability and improve the operating environment for brokerage firms.
DSE Managing Director Nuzhat Anwar said the meeting was arranged to gather practical experiences and suggestions from stakeholders on the short-, medium- and long-term development of the capital market.
She said constructive proposals would be reviewed and, where necessary, placed before the DSE board and the Bangladesh Securities and Exchange Commission (BSEC) for further action.
Anwar said preparations for launching a derivatives market were progressing, with the required software and technological arrangements being developed to start operations within the planned timeframe. The exchange is also working on issues related to investors affected by five recent brokerage-related incidents.
DSE Brokers Association (DBA) President Saiful Islam said the discussion focused on long-standing unresolved issues and practical solutions to address the market’s current difficult situation.
Broker representatives proposed introducing new trading strategies and products, reviewing the feasibility of reopening the long-suspended pre-opening session and extending support related to the tenure and repayment periods of Bangladesh Bank’s special scheme.
They also sought a members’ margin net-off facility to reduce financial costs and liquidity pressure on brokerage firms.
The participants called for making DSE’s inspection and surveillance system more regular, data-driven, risk-based and transparent. They suggested relying on system-based data verification and giving greater attention to unusual price movements and signs of actual irregularities rather than only changes in trading volume.
The brokers also proposed expanding bonds and other financial instruments to reduce the market’s dependence on equities, creating clearer regulatory arrangements for dealers and removing policy and procedural barriers to foreign investment.
They recommended stronger engagement with high-net-worth investors and genuine market participants, investor-focused seminars, encouraging leading companies to list on the exchange and reviewing the possibility of allowing long-term share buybacks.
After the meeting, Anwar said the DSE board had approved plans to strengthen information technology and organisational capacity, which are now being implemented.
She said the exchange was improving investor protection through staff training and data-based software development to make inspection processes more structured and simplify data reconciliation.
She added that regular coordination meetings involving BSEC, Central Depository Bangladesh Limited, Central Counterparty Bangladesh Limited and information technology teams had been planned.
Work is also underway on online account opening, improving services for retail investors and introducing a T+1 settlement system.
Anwar said DSE’s new website was almost complete and expected to be launched at a press conference on 22 September. The existing website will remain available for another two to three months to collect user feedback and support further improvements.
She said DSE would continue working with all stakeholders to make its operations more transparent, efficient and accountable while strengthening the broader capital market ecosystem.
