Listed companies have called for smoother compliance and transparency in the capital market during a key meeting with the Dhaka Stock Exchange (DSE) on Wednesday.
BAPLC, the association representing listed companies, emphasized the need for a more streamlined process for listing and compliance, proposing the introduction of a Green Channel for quality companies.
They highlighted that the current procedures for IPOs, along with regulatory frameworks, often create unnecessary hurdles.
The meeting for exchange of ideas was led by DSE Chairman Mominul Islam and BAPLC President Rupali Chowdhury, along with BAPLC’s executive committee.
Rupali Chowdhury expressed that the capital market needs to focus on solutions rather than merely discussing the problems.
“The entry of small companies, backed by fresh business ideas and plans, into the stock market could be a major growth driver,” she said, adding that simplifying compliance processes was crucial.
Improving IPO procedures
The meeting delved deeply into the challenges surrounding IPO procedures. One key concern raised was the lack of a dynamic valuation model, which the BAPLC representatives believe is crucial for better market performance.
They proposed refining the IPO system to allow good companies to enter the market easily, while ensuring that the entry of substandard companies is restricted.
DSE Chairman Mominul Islam responded by stressing the importance of pricing companies accurately.
“If good companies are offered the right pricing, they will join the market, and underwriters will play their role as checks and balances,” he said.
He also discussed the revised IPO system, which would be more transparent and accessible for businesses.
Digitisation and green initiatives
Another significant proposal discussed was the use of the Green Channel and digitization for faster IPO approvals.
Mominul Islam assured that DSE is working towards implementing these initiatives to ensure that IPO approvals are quicker, and business processes are more efficient.
He also mentioned that efforts are being made to allow businesses to operate without the need for physical visits to government offices.
The digitization of IPOs and other regulatory processes is part of DSE’s broader agenda to make the stock market more business-friendly.
A path to smoother market operations
The meeting also addressed the growing need for coordination between regulatory bodies and the private sector to foster an environment conducive to business.
BAPLC’s proactive stance on improving the market has received positive feedback, with the association calling for regular dialogues with the Ministry of Finance, regulators, and tax authorities.
BAPLC members believe that these efforts, along with smoother customs procedures and transparent reporting, could greatly improve the ease of doing business in the stock market.
The meeting concluded with an agreement on a unified effort to strengthen the capital market in Bangladesh.
Mominul Islam reiterated that the DSE and BAPLC would continue to work together to create a stronger, more transparent, and sustainable capital market.
The meeting also saw the participation of key DSE Directors Major General Mohammad Kamruzzam (retd), Syed Hammadul Karim, Mohammad Shahjahan, Minhaj Mannan Emon, Richard D. Rozario, and its Chief Operating Officer Mohammad Asadur Rahman.
