Finance Minister Amir Khosru Mahmud Chowdhury has tasked the Investment Corporation of Bangladesh (ICB) with helping reshape the country’s capital market into one driven more by institutional investors than retail traders.
Speaking at a programme marking ICB’s 50th anniversary on Thursday, Khosru said the state-owned institution must move beyond its traditional role and become more market-oriented, competitive and professional.
Bangladesh’s market has long relied heavily on retail investors, unlike major international markets where institutional investors play a dominant role. The minister said ICB should take a leading role in changing that structure.
The shift, he said, also requires a technology-led overhaul of the market. The Bangladesh Securities and Exchange Commission, stock exchanges, brokerage houses and ICB should be fully automated and digitalised.
Khosru called for a “No Paper Transaction, Nothing Paper” approach, saying listing applications, regulatory approvals and decision-making should be handled online.
The government is also pursuing reforms in financial-sector institutions, with senior appointments being made without political considerations, according to the minister. He said the government would not make appointments to banks or financial institutions on political grounds.
Bangladesh is meanwhile seeking to broaden the sources of capital available to its market. Khosru said initiatives were being taken to attract global funds through private funds, climate financing and derivatives products.
Referring to a recent meeting in New York between Prime Minister Tarique Rahman and senior executives of 15 global institutions, he said international investors had expressed confidence in Bangladesh’s capital market and economic reforms.
He also urged domestic financial institutions to become more familiar with international financial-market standards instead of remaining dependent on traditional banking practices.
ICB was established through an ordinance to promote a market-based capital market, mobilise public savings and channel funds towards investment and economic activity. Khosru said the corporation should use its experience and ongoing internal restructuring to become a modern and internationally competitive institution.
The programme was chaired by ICB Managing Director Niranjan Chandra Debnath.
BSEC Chairman Masud Khan, Finance Division Secretary Khairuzzaman Majumder, Financial Institutions Division Secretary Nazma Mobarek and ICB Chairman Abu Ahmed also attended the event.
