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Scope to make bubble in capital market almost shut: Muhith

WT24 Desk

Finance Minister Abul Maal Abdul Muhith today said the country has now a better capital market where the opportunity of creating bubble is almost shut, BSS reports.  “Volatility is always there in the capital market across the world, but the economy has to suffer when serious bubble is happened in it . . . we have carried out lots of reformation in rules and regulation, so I think the opportunity of creating bubble in the capital market has almost been closed,” he added.

The minister passed the remarks while receiving the cheque of cash dividend from the Investment Corporation of Bangladesh (ICB) at his secretariat office this morning. Chairman of the ICB Board of Directors Dr S M Mahfuzur Rahman and Managing Director M Fayekuzzaman handed over the cheque. Members of the Board of Directors and ICB officials were present on the occasion.

The ICB handed the cheque of Taka 51.25 crore for financial 2013-14 year against 27 per cent or 113,90,625 shares owned by the government. In the fiscal, the ICB has announced a total of Taka 189.84 crore cash dividend at the rate of Taka 45 against per share. The company made net profit of Taka 310.51 crore in FY 14. Terming the cash dividend ceremony as an important and pleasant occasion, Muhith said the government normally gets less opportunity of getting such kind of dividend from any state-owned entity.

He said ICB was established to develop the capital market. “So, ICB has to put concentration to keep the capital market better,” added the minister. Mentioning the capital market’s main job as accumulation of money, he said: “Bangladesh now has good capital market which was earlier a “swindling market”. . . It required five years time to be a market and it has to be protected as capital market.”

The finance minister said nearly 80 per cent of the country’s economy is now run by the private sector which was not the case when Bangladesh came into being. “Now, the responsibility of the government has increased and the government is playing effective role in regulation,” he added. The ICB, established in 1976, had made income of Taka 2,487 crore in 33 years, while in the last five years, it has made income of Taka 4,673 crore. In 33 years, it gave the dividend of Taka 72 crore while Taka 510 crore was given as dividend in last five years.

Dr S M Mahfuzur Rahman said ICB, as a unique organization, is contributing to country’s development activities. Chairman of the ICB Board of Directors hoped it would contribute more through bringing innovation in its operation.

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