“Deregulation has to be introduced in capital market. Market participants should not have to approach the regulator for every issue”
Prime Minister’s Special Assistant on Investment and Capital Market Tanvir Gani said the government is working on deregulation in the capital market to reduce excessive regulatory intervention and support market expansion.
“Deregulation has to be introduced in capital market. Market participants should not have to approach the regulator for every issue,” he said during a visit to the Chittagong Stock Exchange (CSE) headquarters on Wednesday, according to a press release.
Tanvir Gani held a meeting with CSE officials on the market situation, the exchange’s contribution to the capital market and preparations for launching a commodity exchange.
He expressed satisfaction over the preparations and said hedging mechanisms were necessary for importers in Bangladesh’s import-dependent economy.
“In that context, a commodity exchange can play an important role,” he said.
Tanvir Gani said focus should now shift to the commodity exchange segment and added that there was no alternative to CSE in implementing the initiative.
He also assured support for the quick launch of the commodity exchange.
He stressed the need to revitalise mutual funds, saying financial literacy among equity investors remained inadequate.
He also praised CSE’s awareness programmes, training sessions and workshops on commodity derivatives.
“Derivative trading in commodity exchanges requires high financial literacy. The most notable issue today is that CSE is ready to introduce a new asset class,” he said.
At the meeting, CSE Managing Director M Shaifur Rahman Mazumdar presented an overview of the exchange and the current market condition.
CSE General Manager and Head of IT Mezbah Uddin outlined the exchange’s technical preparations for the commodity market, while CSE Assistant General Manager Faisal Huda presented details on the commodity derivatives segment.
The event was attended by CSE Chairman AKM Habibur Rahman and directors Major (Retd) Emdadul Islam, Naznin Sultana and Shahjada Mahmud Chowdhury.
CSE Chairman AKM Habibur Rahman said the exchange was awaiting approval for commodity brokers and commodities.
Director Major (Retd) Emdadul Islam said Tanvir Gani’s remarks had created “genuine hope” for establishing the commodity exchange.
