Ex-finance adviser against regulator's frequent intervention in stock market

ormer finance adviser Dr Mirza Azizul Islam yesterday said regulatory authorities should not always intervene in the capital market.

“In principle, I'm against intervention in the market, but sometimes it has become investigable to protect people's interest due to various problems,” he said while speaking at the inaugural session of a daylong workshop on capital market.

Economic Reporters Forum (ERF) and Dhaka Stock Exchange (DSE) jointly organised the workshop at the DSE training center. DSE President Md Rakibur Rahman and ERF President Nazmul Ahsan were present at the inaugural session.

Dr Aziz mentioned that the intervention should be made to protect interests of investors and the country.

He, however, said the world recently faced the biggest economic meltdown due to non-intervention and lack of monitoring.

Aziz also advocated parleys with stakeholders before going for any sort of intervention in the capital market.

The former finance adviser criticised the attitude of the government in offloading the state-owned enterprises and said government officials concerned should be motivated in this regard.

“People at the capital market will have to convince the government officials that the offloading of state-owned enterprises would not cut down their authority,” he told the workshop.

Describing the trend of the economies in countries like Bangladesh, the former chairman of the Securities and Exchange Commission (SEC) said banks should play the main role at the initial stage and then the capital market should come to play its part.

He also said many government officials of the country do not have any idea how the capital market could boost the economy by helping the government raise funds.

He said raising funds from the capital market is cost effective than going to banks. “You'll have to shoulder some set liabilities for your bank loans, but you don't need to give dividends despite losses in business.”

Aziz said the country's capital market will develop gradually as the present government is very cordial to do that.

Responding to a question, the former finance adviser said there is no fake share in the capital market right now.

“The present infrastructure of the market is not suitable for the vested quarters to indulge in foul play with fake shares,” he sai