At DSE Brokers Association Forum, Tapan Chowdhury stresses need for investor education and market reforms; BSEC Chairman outlines ongoing regulatory initiatives.

Tapan Chowdhury, Chairman of Central Depository Bangladesh Limited (CDBL) and Managing Director of Square Pharmaceuticals, warned that many investors have lost their entire life savings due to the instability of Bangladesh’s capital market. He made the remarks at a discussion titled “Current State of Bangladesh Capital Market” organized by the DSE Brokers Association of Bangladesh (DBA) on Wednesday.

Addressing the forum, Chowdhury highlighted the vulnerability of ordinary investors who often lack the expertise to understand complex financial documents such as company balance sheets. He underscored the responsibility of market intermediaries and regulators to protect such investors.

“Many investors have invested their lifelong savings, only to lose everything in our unstable capital market. We must ensure such situations do not recur in the future,” said Chowdhury.

He recalled an earlier incident involving Square Pharmaceuticals’ shares, mentioning that some investors were offered shares of Square Textile free of cost by Samson H. Chowdhury. However, government restrictions prevented this distribution. Eventually, Samson Chowdhury took legal action in the High Court and successfully facilitated the share allocation.

Demonstrating the growth of Square Pharmaceuticals, Chowdhury noted, “Our company once had a market capitalization of 900 million taka. Today, Square Pharma’s market cap stands at 18,172 crore taka. This remarkable growth owes much to the investors’ confidence.”

The event’s chief guest, Dr. Anisuzzaman Chowdhury, Special Assistant to the Chief Advisor, emphasized that market reforms are long-term processes that cannot be rushed.

“Every reform carries uncertainty, so it cannot be viewed through a political lens alone. Bangladeshis are fortunate to have had multiple opportunities, but they have yet to fully capitalize on them. Reforms need time; otherwise, uncertainty can derail progress,” he said.

Dr. Anisuzzaman further noted that previous governments may not have prioritized integrating the capital market into mainstream economic development. However, he acknowledged efforts by the current interim government advisor to address challenges such as the region of negative equity through obtaining written commitments from stakeholders.

The event was moderated by Saiful Islam, President of the DBA, and featured key industry figures including Khondkar Rashed Maksud, Chairman of the Bangladesh Securities and Exchange Commission (BSEC); Abu Ahmed, Chairman of the Investment Corporation of Bangladesh (ICB); Mominul Islam, Chairman of the Dhaka Stock Exchange (DSE); and Javed Akhtar, President of the Foreign Investors Chamber of Commerce and Industry (FICCI).

BSEC Chairman Khondkar Rashed Maksud shared insights on ongoing regulatory reforms aimed at revitalizing the capital market.

“Reforms are underway, and we aim to leave a lasting footprint. We are working on mutual fund regulations, initial public offering (IPO) frameworks, and margin rules. Once legislation is completed, about 60-70% of necessary reforms will be in place,” he stated.

He clarified the commission’s role:

“BSEC’s mandate is regulation, not to manipulate market indices. Our job is to create policies for market development and monitor their implementation. Everyone knows how far we have lagged in the past 15 years. For example, companies with only 10 crore taka in capital have raised 275 crore taka from the market. Our commitment is firm. We are assessing our current status and identifying future steps to improve the market.”

The discussion highlighted the urgency for greater investor protection, transparency, and structural reforms to foster sustainable growth in Bangladesh’s capital market. Participants collectively urged continuous efforts to stabilize the market and rebuild investor confidence, ensuring the financial system serves the nation’s broader economic goals.