Investor confidence returning to capital market through reforms, strict oversight: Khosru

Investor confidence in Bangladesh's capital market is gradually returning due to sweeping reforms, stronger regulatory oversight and strict action against those involved in past market manipulation, Finance Minister Amir Khosru Mahmud Chowdhury told parliament today (12 July).

Responding to a supplementary question from opposition MP Md Kamrul Hasan (Mymensingh-6), the minister said the country's capital market has shown visible improvement since the reconstituted Bangladesh Securities and Exchange Commission (BSEC) assumed office.

"The stock market has maintained an upward trend over the past two months, with significant gains in the market indices," he said, adding that the current commission is playing a positive role in restoring investor confidence by ensuring greater transparency and accountability.

The finance minister said the government has appointed a completely new BSEC comprising a chairman and three commissioners, while the process of appointing another commissioner is underway.

He said none of the commission members had been appointed on political considerations. Instead, they were selected based on professional competence, experience and integrity.

According to the minister, the commission, led by professionals with extensive experience in domestic and international capital markets, is working to strengthen governance in the market.

Highlighting actions taken against irregularities and market manipulation during the previous government's tenure, he said disciplinary measures had already been taken against individuals and institutions found responsible, while investigations and legal proceedings in several other cases remain ongoing.

Detailed information on these actions has also been published on the BSEC's website, he added.

The minister said financial penalties had been imposed on various individuals and organisations for market manipulation and fraud. Action has also been taken against those involved in manipulating Beximco share trading.

He added that the commission is implementing further measures based on the recommendations of a committee formed to investigate allegations of corruption and financial irregularities.

The government's objective, he said, is to transform Bangladesh's capital market into a transparent, accountable and internationally recognised investment destination.

He claimed that not only local investors but also listed companies and international fund managers have started showing renewed interest in the market.

Investment managers from major global financial centres, including Hong Kong, London and New York, have already begun visiting Bangladesh to assess investment opportunities in the capital market, he said, adding that the market's recent upward trend reflects improving investor confidence driven by the government's reform initiatives.

In response to another supplementary question, the finance minister said the government is implementing a comprehensive programme to make the tax system simpler, fairer and more taxpayer-friendly while expanding the country's tax base.

He said the National Board of Revenue (NBR) is identifying the market share of different businesses and assessing taxes based on their actual business capacity to ensure a more rational and transparent taxation system.

The government is also introducing a simplified flat-rate tax regime to bring individuals and small businesses currently outside the tax net into the formal tax system, he said.

Under the proposed system, taxpayers will pay a fixed amount based on their financial capacity and location, eliminating the need to file income tax returns or undergo lengthy assessment procedures.

The minister said the primary objective is to encourage voluntary tax compliance among new taxpayers and rapidly expand the tax base. Once a sufficient number of new taxpayers are brought into the system, they will gradually be integrated into the conventional tax regime, he added.