Press Release

CSE 10^th Anniversary Program kicks off today

CSE President urged for concerted efforts

Mr. Habibullah Khan while reminiscing CSE achievements that CSE gained during the last ten years, he said introduction of Automated Trading on Wide Area Network is the most notable one. From day one, when it was launched in 1998, investors of Chittagong, Dhaka,and Sylhet could trade online real time. Gradually we expanded the network to Rajshahi, Barisal and Coxsbazar. The event marks an important milestone in the history of Bangladesh capital market.

While addressing on importance of Central Depository System, he said, CDBL is the most important milestone in the capital market of Bangladesh. CSE took the initiative and the Founder President of CSE Mr. Amir Khosru Mahmud Chowdhury MP raised a bill in the parliament in 1998 paving the way to finally launch CDS in Jan 2004.

Mr. Khan while exchanging experience of SAFE formation, he said South Asian Federation of Exchanges SAFE marks an important milestone towards regional and global integration. The leaders of CSE envisioned a forum of regional stock exchanges and took the initiative to plunge into the concept and eventually formed the forum in 1999. Now the federation is working on listing harmonization with a view to start cross border listings and trading.

On Internet Trading System (ITS) he said, with a view to cater to the needs of the overseas investors, particularly the non-resident Bangladeshis CSE launched Internet Trading System through which investors can trade directly from any part of the world. As of today we are the only Exchange having this facility.

On over the counter market (OTC) he said, this is a kind of an alternative segment of market like the ones in London Stock exchange, New York Stock Exchange or in Bombay Stock Exchange. We never had this kind of share market segment in our country. We felt the need at CSE, and implemented it. Small and medium, innovative and high growth companies will be listed in this market and also the de-listed companies as an exit route. In addition this will be a preparatory stage for the entrepreneurs to come to the share market through IPO. Only CSE has got this facility in the country.

On Human resource development, he said, HR is a very important factor to develop professionalism in the capital market. We signed an MOU with Stock Exchange of Thailand and consequently exchanged dozens of Executives between the two Exchanges already. Under the SAFE program we are also having huge knowledge transfer amongst the member exchanges through executive training being organized by the SAFE.

While discussing on Ongoing Issues and Recommendations, he said establishment of a Securities Training Institute is also our brainchild. We felt the need of such an Institute, which will produce professional securities analysts, brokers and adviser. Currently SEC has undertaken the issue, and working on it. We hope, they will be able to materialize it soon.

He further said, since the beginning of my tenure as President, I have been emphasizing that the study of Capital Market should be included in the secondary school curriculum and onward. Because this is so important, it will just make aware the future generation about the capital market.

While discussing on present market situation, he said, our market depth is very shallow having only a few equity shares. Market capitalization is only 5% of our GDP, whereas it is 30% in Pakistan, 50% in India and 80% in Thailand. We need to have more mutual funds and bonds to bring depth in the market. In addition the government should offload their holdings in the multinational companies and divest the SOEs (State Owned Enterprises) such as Bangladesh Biman. Also, government can securitize large projects like Jamuna Bridge or other very successfully by mobilizing the domestic fund. There is a great demand of good shares in the primary market, which is evident by the huge over subscription in the recent IPOs lately.    

Government should enact laws so that the multinational companies go public and list their shares in our local market. Most of the multinational companies operating in our country have listings in their home country. Why don’t they issue share in our capital market, list here, and share some profit with our investors. Govt. should look into the matter seriously. 

A primary step in the development of the capital market needs to be strengthening capacity of the regulatory authority, i.e. SEC. Simultaneously, SEC has to be an independent authority, totally free of government intervention. Only then they can perform up to the standard and cater to the needs of the capital market.   

He also said, we always focused on infrastructural development at CSE. We have a plan to build a Financial Hub at the heart of Agrabad Commercial Area. CSE has its own land in front of its existing building at Agrabad, where we are going to erect this multi-storied building. Once it is built this is going to be the epicenter of all the commercial and financial activities in Chittagong.

He said, last but not the least. Media’s role in developing a strong capital market is very crucial. Whatever we do for the betterment of the market, unless it is widely and positively broadcast, it has no value. I am very grateful to the media that it is playing its due role so far, and I hope, it will continue to do so for the betterment of the capital market.

Mr. Nasiruddin Ahmed Chowdhury, Vice President, CSE and other CSE directors Mr. Abu Sayed Md. Shahidullah, Mr. Tareq Kamal and Mr. Bijan Chakroborty were present at the press conference.

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For Chittagong Stock Exchange