80 pc brokerage house sunable to meet operating expenses: DBA President

Staff Correspondent : The ongoing floor price has impacted not only the investors but also the brokerage houses, dealers and other stakeholders as well.
Saiful Islam, President of DSE Brokers Association of Bangladesh (DBA) and Director of BRAC EPL Stock Brokerage Limited, said that 80 percent of brokerage houses have not been able to meet their operating expenses for one and a half years due to the floor price.
He said these things during an exchange of views between members of Capital Market Journalists Forum (CMJF) and members of DSE Brokers Association of Bangladesh (DBA) at DSE Tower, Nikunj in the capital yesterday.
CMJF president Golam Samdani Bhuiyan, general secretary Abu Ali and former president Ziaur Rahman along with the leaders of both organizations were present in the exchange meeting.
Saiful Islam said, since 2010, the market has not gained momentum. The improvement of the country’s economy in the last 15 years has not had any effect on the capital market. Although the country’s economy is progressing, the capital market is lagging behind. In addition, the process of new companies entering the market is complicated. Rethinking these issues will enrich the market.
He also said that the current situation of the country’s stock market has gone far behind. One of the reasons for the decrease in market transactions is the floor price. The market must be allowed to run at its own pace, or normalization is not possible.
The president of DBA said that it is time to review the issue of IPO now. Problem solving is not possible without finding specifics. If you look at the last 3 years, it is seen that IPOs have decreased in large numbers. Market development is not possible if the problem is not solved with attention to this matter.
President of DBA Saiful Islam said to the reporters that we are expecting a proper plan and advice from you to get out of the current market situation. So that we can work together to solve this problem.
Former President of Bangladesh Merchant Bankers Association (BMBA) Saidur Rahman said, if good companies are not listed in the market, it is not possible to improve the market. On the other hand, the tax rate of listed non-listed companies is 7.5 percent which is very low. Increasing the tax rate is very important, we have been emphasizing on this issue all the time but there is no effective action in sight. So, it is important to take necessary steps to enlist a good company.
Majeda Khatun, president of Bangladesh Merchant Bankers Association (BMBA), said, “We seek the cooperation of journalists with the overall cooperation of the capital market.” We will all work together for the development of the country’s stock market. I hope that the stock market will develop if everyone moves forward from their respective places.
Capital Market Journalists Forum (CMJF) President Golam Samdani Bhuiyan said that the capital market has not improved as Bangladesh’s economy has progressed. When the country’s economy was good, as the capital market was bad, now the economy is slightly depressed, the market is still bad.
He said that the floor price has become a barrier in the country’s capital market. Due to floor price, the loss of investors is increasing day by day. Due to not being able to buy and sell shares at the right time, many people’s capital is stuck. Investors seek relief from such situations. Everyone expects market transactions to continue at a normal pace.
Ziaur Rahman, former president of CMJF and editor of financial index, said, if we want to see the capital market in a good position. If an eco-system can be created with all stakeholders in the market, then good companies will be listed in the market. We have expressed your concern about the floor price in writing. We have presented it directly to them If the resulting crisis of confidence remains among people, future potential investors will no longer be interested in investing in the market.
CMJF Secretary Abu Ali said, CMGF provides training for the development of the capital market and increasing the skills of journalists. Besides, we have conducted various research activities which will be useful in the development of the market. The most important market improvement requires the combined efforts of all.