The
Government of Bangladesh and the Bangladesh Bank (the central bank of
Bangladesh) have taken several steps to restore confidence and bring about
stability in the capital market. Some of the key steps taken include
1.
Strengthening Regulatory Framework:
The regulatory framework of the capital market has been strengthened to enhance
transparency, accountability, and investor protection. This includes amending
existing laws and regulations, introducing new regulations, and implementing
stricter enforcement measures.
2.
Enhanced Governance and Supervision:
Measures have been taken to improve the governance and supervision of the
capital market. This involves ensuring the independence and effectiveness of
regulatory bodies such as the Bangladesh Securities and Exchange Commission
(BSEC) and the Dhaka Stock Exchange (DSE) Efforts have been made to enhance the
capacity and expertise of these institutions to effectively regulate and
supervise the market
3.
Investor Education and Awareness:
Initiatives have been launched to improve investor education and awareness
about the capital market. These efforts aim to educate investors about
investment risks, financial literacy, and the importance of conducting proper
due diligence before making investment decisions. Investor protection
campaigns, and seminars. Workshops and educational materials have been
introduced to promote informed investment practices.
4.
Market Surveillance and Monitoring:
Enhanced market surveillance and monitoring mechanisms have been implemented to
detect and prevent fraudulent activities, market manipulation, and insider
trading. The regulatory authorities, such as the BSEC and the DSE, employ
sophisticated monitoring tools and techniques to identify irregularities and
take timely action.
5.
Strengthening Corporate Governance:
Steps have been taken to improve corporate governance practices in listed
companies. This includes promoting transparency, disclosure, and accountability
among listed companies. Stricter regulations and guidelines have been
introduced to ensure adherence to corporate governance standards.
6.
Introduction of Margin Trading and Short
Selling: Margin trading and short selling have been introduced in the
capital market to enhance liquidity and facilitate more sophisticated trading
strategies. These measures allow investors to leverage their investments and engage
in short-term trading activities, thereby increasing market efficiency.
7.
Introduction of Alternative Investment
Products: To diversify investment opportunities and attract a broader
investor base, the introduction of alternative investment products such as
mutual funds, exchange-traded funds (ETFs), and real estate investment trusts
(REITs) has been facilitated. These products offer investors additional avenues
for investment and contribute to market stability.
These
steps collectively aim to restore confidence, improve investor protection, and
bring stability to the capital market of Bangladesh. The government and
regulatory authorities continue to monitor the market closely and take
necessary actions to foster a sustainable and resilient capital market
environment.