DHAKA, Oct 27, 2020 (BSS) – Chairman of the Bangladesh Securities
and Exchange Commission (BSEC) Prof Shibli Robayat Ul Islam today
suggested those investors in the capital market, who do not have such
know how about the capital market, to invest in mutual funds instead
of shares.
“Our mutual fund sector is very much promising. Although there was
lack of transparency in this sector in the past as the amount of some
funds was invested in wrong places. Steps have been taken to return
back such investments. It is being ensured that no fund amount is
invested in the wrong place. BSEC is trying to enhance transparency
and accountability in the mutual fund,” he said.
The BSEC Chairman was addressing a function while inaugurating a
personal finance related online portal ‘Amar Taka’ and also at the
inauguration of financial literacy programme.
He informed that the mutual funds in the country now have the
capacity to give 10 to 18 percent dividend while some of the mutual
funds are doing well as the return from the mutual funds is much more
profitable than the fixed deposits in banks.
The BSEC Chairman opined that the clients can now get 5 to 6
percent interests on their bank deposits, but on the other hand,
investments in mutual funds and in some shares is much more
profitable.
He mentioned that the BSEC is working with the public and private
sector to make bonds popular as an alternate sector for investment
while efforts are going on to bring Sukuk bond in the market.
“If these come to the market, the returns will be good as the
investors would need not to pay taxes for making investments here.
We’re bringing newer savings products which will benefit people,” he
added.
The BSEC Chairman claimed that prior to her joining as the BSEC
boss, the market Capital was around Taka 3 lakh crore, but now the
market Capital has increased to around Taka 4 lakh crore.
Noting that the Bangladesh Bank is helping towards development of
the Capital Market, Shibli said steps have been taken to address the
negative equity problem in the Capital Market.
“Bangladesh Bank can come up with a low-interest fund and this will
enhance the investment capacity of the merchant banks. Side by side,
the State owned ICB can play a stronger role to stabilize the Capital
Market,”
He also urged the authorities concerned to look into the matter
whether the local insurance companies can make insurance of bonds. He
also called upon the authorities concerned for introducing first party
insurance system after withdrawing the 3rd party insurance system
which will increase the income of the companies.
Insurance Development Regulatory Authority (IDRA) Chairman Dr M
Mosharraf Hossain while addressing as special guest said they have
taken steps to reduce the cost of the insurance companies.
“Earlier, expenditure of insurance companies was 65-70 percent. We
have taken steps to bring down such expenditure at 15 percent for
which a good reaction is being seen among the shares of the insurance
companies,”
Bangladesh Institute of Capital Market (BICM) Executive President
Prof Dr Mahmuda Akhter graced the function as the guest of honour
while former President of CFA Society Bangladesh Shahidul Islam made
the key-note presentation. The programme was chaired by ‘Amar Taka’
Editor Ziaur Rahman.