Stockbrokers have backed the proposed FY2026–27 budget while urging faster capital market reforms to deepen liquidity, diversify funding instruments and reduce reliance on bank financing.
The DSE Brokers Association of Bangladesh (DBA) said on Saturday that the budget’s reform agenda broadly supports market development, but warned that outcomes depend on execution capacity and regulatory coordination.
Strengthening of regulatory oversight, investor protection and governance standards was cited as central to rebuilding confidence in a market long constrained by shallow depth and limited participation.
DBA highlighted the budget’s emphasis on alternative financing tools, including corporate bonds, mutual funds, green bonds and sukuk, as a step towards broadening long-term funding channels.
A shift towards equity and bond-based financing, it said, could ease pressure on the banking sector while improving capital allocation for industrial expansion.
Simplification of listing procedures for viable companies and improved disclosure requirements were identified as key measures to increase the supply and quality of securities.
The association also welcomed proposals to reinforce the capital market regulator and tighten investor safeguards, noting that credible enforcement is critical to reducing speculative volatility.
Plans to introduce municipal bonds were described as a potential structural milestone, subject to clear regulatory design and institutional readiness.
Despite the positive assessment, DBA flagged persistent constraints, including limited product depth, low institutional participation and continued dominance of bank-based funding.
It cautioned that without accelerated reform delivery, the capital market would remain underutilised as a vehicle for long-term savings mobilisation and investment financing.
Coordinated action among government agencies, regulators, exchanges and intermediaries was called for to translate policy intent into measurable market expansion.
DBA said effective implementation could reposition the capital market as a stronger channel for corporate financing and economic growth rather than a supplementary funding source.
