Some Recommendation to development Share Market in Bangladesh

Share Market is a market in which securities are bought and sold; a stock exchange. It is a place where shares of pubic listed companies are traded. A stock market is a place where shares of pubic listed companies are traded. There are two types of stock market: primary & secondary. The primary market is where companies float shares to the general public in an initial public offering (IPO) to raise capital.

Bangladesh is a developing country. The economy of this country is agro-based. Though the industrial sectors are growing faster today, the previous scenario of our industry was not satisfactory.

Some Recommendation to development Share Market in Bangladesh

The capital market is not strong in Bangladesh. Stock exchanges are not functioning well due to many constraints. Some recommendations to improve capital market in Bangladesh are given below:

  • Creating awareness among society so that people are encouraged to invest in the stock market on the basis of the company merit.
  • Providing loan convenient for the general people.
  • The management of stock exchanges should be more efficient and effective.
  • Developing and following strict rules and regulations of SEC.
  • Using recent technologies to ease transactions.
  • Increasing institutional investors.
  • Enlarging number of members.
  • Monitoring and regulating ensiles so that they follow the rules and regulations.
  • Policy formulating and taking decisions speedily and implementation.
  • Declaring the income from share market as tax-free.
  • Attracting foreign investments by taking necessary actions.
  • Automation in the transaction and keeping records of transactions.
  • Emphasizing on privatization.
  • Arranging adequate training for both investors and companies.
  • Minimizing restrictions to increase the number of registered companies.
  • Protecting fraudulence and speculation.
  • Solving the problems of stock exchange efficiently and effectively.
  • Inspiring and pressuring the foreign companies to issue shares in our stock exchange.
  • Issuing shares of govt. companies with special attention.
  • Providing loan for jobbers and brokers.
  • Maintaining transparency of transactions.
  • Protecting leakage of secret information.
  • Introducing lock-in system so that they cannot withdraw their investment before the certain period.
  • Broken should be restrained from the management of companies.
  • Developing functions of SEC.
  • Reducing govt. intervention.
  • Exchanging views with companies and investors.
  • Establishing new stock exchange.
  • liberal fiscal policy.

If the above recommendations are followed strictly, it is likely to improve the poor condition of our stock mine thereby developing industrialization to utilize our resources properly.