Bangladesh’s capital market is undergoing a significant transformation, with institutional reform, greater transparency, and market modernization at the heart of the agenda. In an exclusive interview with FICCI Monthly, Mr. Tanvir Ghani, Special Assistant to the Prime Minister for Investment and Capital Market Affairs, discusses the ongoing reforms and their implications for investors.
He highlights that the reform process is focused not on incremental adjustments, but on strengthening the institutional foundations of the market. Key priorities include professionalizing regulatory institutions, improving corporate disclosure and audit standards, diversifying financial products, and developing digital infrastructure to support a more modern and competitive capital market.
According to Mr. Ghani, the most consequential changes are institutional. The Bangladesh Securities and Exchange Commission (BSEC) has been reconstituted with a professional leadership team, while efforts are being extended across the financial sector to strengthen governance and reduce political influence in regulatory institutions.
Transparency is another central pillar of the reform agenda. The focus is on improving audit quality, strengthening balance-sheet integrity, and bringing corporate disclosure standards closer to international norms—areas that are particularly important to foreign institutional investors.
“No amount of market-development messaging substitutes for investors trusting the numbers they are reading.”
Modernization also involves expanding the range of financial instruments available to investors. Corporate bonds, mutual funds, green bonds, and Sukuk are among the areas receiving greater attention, alongside investments in digital infrastructure and financial cloud technology.
The need for diversification is particularly important because Bangladesh’s capital market remains heavily dependent on equities, while the corporate bond market is still relatively limited. Expanding bond, Sukuk, and green-finance markets is therefore being treated as a structural priority for supporting long-term economic financing.
Mr. Ghani emphasizes that restoring investor confidence requires more than technological upgrades. Effective enforcement and consistent regulatory action are equally important.
The reconstituted BSEC has taken visible action against instances of past market manipulation, signaling a stronger focus on enforcement and accountability. For institutional investors, such actions are important because confidence depends not only on reform announcements but also on whether those reforms are implemented consistently.
Alongside enforcement, upgrades to settlement systems, streamlined procedures for the repatriation of investment proceeds, and technology-driven market surveillance are expected to contribute to a more efficient and predictable investment environment.
Together, these reforms are intended to create a capital market where stronger governance, greater transparency, modern financial products, and digital infrastructure reinforce investor confidence and support increased domestic and foreign participation.
The broader objective is to build a deeper, more predictable, and internationally competitive capital market capable of supporting Bangladesh’s next phase of economic growth.
