Capital market can be vital source for infrastructure financing: DCCI president

The tax difference between listed and non-listed companies should be rationalised in order to encourage good companies and pursue well-performing large corporates for listing in the capital market, said Rizwan Rahman, president of Dhaka Chamber of Commerce and Industry (DCCI).

Rahman made the comment while making a courtesy call on Prof Shibli Rubayat-Ul-Islam, chairman of Bangladesh Securities and Exchange Commission, at the BSEC headquarters in Dhaka's Agargaon today.

Citing the report of the Global Infrastructure Hub, the DCCI president said Bangladesh will need to invest $608 billion from 2016-2040 in the infrastructure sector.

"The current trend indicates that Bangladesh will be able to meet $417 billion investments in the infrastructure sector leaving a financing gap of $192 billion from 2016-2040. The capital market can play a pivotal role to reduce the investment gap in Bangladesh."

"Capital market has a huge potential to address the CMSME financing gap as well as encourage businesses to source long-term capital reducing dependence on banks and NBFIs."

"The DSE SME platform needs to be effectively operationalised as well as listing rules for SME Platform needs to be relaxed."

To create a vibrant secondary bond market, priority needs to be given on implementing an enabling policy to develop market infrastructure, simplification of the bond issuance process, tax incentives for both issuer and investors, and credible credit rating by the national as well as international credit rating agencies, he added.

The BSEC chairman said the stock market regulator has already organised several roadshows in the UK, the USA and Switzerland to attract foreign investment in the capital market as well as to brand Bangladesh.

He informed them that they will organise another roadshow in Qatar next month.

He thus invited DCCI to join the roadshow to showcase Bangladesh's economic advancement.

"The government of Bangladesh is a business-friendly one and we all should uphold the positive image of Bangladesh in the international arena," he said.

He sought cooperation from the private sector to expedite country branding in a much wider manner.

"Bangladesh has made tremendous progress in many sectors especially in the infrastructure sector but these achievements did not get much promotion," he added.

Monowar Hossain, vice-president of the DCCI, was also present.