Previous government used the bond market for dishonest purposes.
Bangladesh’s capital market lags behind most countries in the world. The condition of the bond market is even more fragile. In developed and developing countries, a large part of the market capital is covered by bonds and other securities such as debentures. Here, the share of bonds and debt securities in the market capital is close to one-tenth. Even the debt securities that exist are not traded much. Although the regulatory body talked about the development of the bond market during the last Awami League government, in reality this market has been misused.
Ziaur Rahman, editor of the Financial Times and former president of the Capital Market Journalists Forum (CMJF), said this at the inauguration of a training program held at the BICM auditorium on Topkhana Road on Wednesday (February 19). The program was jointly organized by the Capital Market Journalists Forum and the Bangladesh Institute of Capital Market (BICM).
At the event, Ziaur Rahman said that during the previous government’s tenure, political influence and various connections allowed such individuals to withdraw thousands of crores of taka from bonds and sukuk, and their past record and image are not good. The actual performance of the institutions in whose name the bonds were issued is also questionable, and there are doubts about the use of the money raised and the potential profits. There is great uncertainty about whether these bonds will be able to give the promised returns, i.e. profits or interest, to investors in the future. If this happens, not only will the investors of these bonds be harmed, but a negative perception will be created in the minds of people about the overall bond market. As a result, even if good institutions and honest entrepreneurs issue bonds in the future, they will not get a response from investors.
He also said, “If the misuse of the bond market is not stopped, investors will lose confidence in it. Therefore, the regulatory body should take effective measures in this regard.
The financial editor called on the interim government to take action against those who have misused bonds and sukuk in the past. However, he also called for ensuring that investors of sukuk and bonds are not harmed even if punitive action is taken against the guilty.
BICM Acting Executive President Nazmus Salehin, CMJF President Golam Samdani Bhuiyan and General Secretary Abu Ali also spoke at the event. Faima Akhter, a lecturer at BICM, moderated the event.
BICM Acting Executive President Nazmus Salehin said at the event that BICM is working to create skilled manpower. The role of this institution for the capital market is undeniable.
CMJF President Golam Samdani Bhuiyan said that there is no alternative to bonds in the development of the capital market. But there is some deficiency in knowing and understanding about these bonds. This is the reason for this arrangement. Hopefully, such training will play a role in filling that deficiency.
CMJF General Secretary Abu Ali said, “The stock market is a sensitive place. The journalists working in this section come from outside the economics and commerce departments. As a result, CMJF is always striving for responsible journalism in sensitive areas.”
