The Ministry of Finance officials have announced the government’s intention to establish a commission dedicated to reforming the capital market for increased transparency and renewed investor trust. This decision was made during a recent meeting related to budget matters and aligns with the ruling BNP party’s pledge to revitalize the capital market as outlined in its election manifesto.
According to ministry sources, the commission will focus on comprehensive market reform, with particular emphasis on strengthening both the bond and equity markets. Additionally, the government aims to explore the integration of blockchain technology, create investment avenues for non-resident Bangladeshis, and attract more foreign investments to bolster the market.
During the meeting, it was highlighted that the Dhaka Stock Exchange (DSE) has experienced a decline in market capitalization by Tk 33,000 crore, equivalent to 4.4 percent, from January 2024 to February 2026. The DSE’s key index, the DSEX, also saw a decrease from 6,153 to 5,600 points within the same timeframe.
These initiatives follow previous reform actions undertaken by the interim government, which established a taskforce comprising five members to propose necessary changes to the stock market. After widespread consultations with stakeholders, the taskforce recommended amendments to multiple securities regulations, many of which were subsequently adopted by the Bangladesh Securities and Exchange Commission (BSEC).
Former finance adviser Salehuddin Ahmed, in a departing statement, mentioned that the BSEC underwent restructuring during the interim government’s tenure, and an external investigative body was set up to address 12 irregularities from the previous administration. Furthermore, a taskforce was assigned to revise key regulations related to margin loans, mutual funds, and public offering issuance.
In addition to these efforts, a committee was formed to fortify the BSEC and enhance the overall capital market scenario, subsequently providing a set of recommendations for improvement. Ahmed noted that these recommendations were forwarded to relevant ministries for implementation.
