There are limitations present in our capital market which are there because there isn’t enough automation. Stock market manipulations can be prevented through more modernization, accelerating the inter connectivity and ensuring the availability of more relevant information.
DR. MUHAMMAD ABDUL MAZID, Chairman, Chittagong Stock Exchange Limited completed his Masters in English from Dhaka University in 1977 and later his PHD from Victoria University, Delaware on the Agriculture Economy in Bangladesh. He was the Director of ERD and the Ex-Chairman of the National Board of Revenue (NBR). He was also a former member of board of directors Padma Oil Company, Bangladesh Petroleum Institute, Sheraton Hotel, Jiban Bima Corporation, Bangladesh Insurance Acedemy, Janata Bank and also Bangladesh Bank.
Mazid is an avid reader, prolific writer and an international personality. He is a member of the Bangladesh Diabetic Samity, Asiatic Society, Bangla Academy and International Business Forum of Bangladesh. His has over 20 publications relating to economic research and development, financial management, fiscal budgets and even some literary and nonfiction work. A good number of his research articles which also been published in prestigious research, academic and institutional journals locally and abroad. Due to his numerous bodies of work he has received a host of awards which include the Khulna Shaitya Parishad Purashkar (1978), Khulna Writers Club Padak (2002), Lions Club Celebrity Padak (2007) and Nawab Sir Salimullah Gold Medal (2008). IBT recently caught up with him to get to know about the upcoming Capital Market Fair of CSE scheduled to be held on 8-9 October in Chittagong.
What are the specialties of Chittagong Stock Exchange? What can you tell us about the Captial Market Fair you are organizing?
The Chittagong Stock Exchange was established in 1995 and from its inception it has been digitally and technologically effective. With the systems and software in place it is like any other modern stock exchange. However, due to comparatively lower market share we are unable to fully utilize this sophisticated platform. There are limitations present in our capital market which are there because there isn’t enough automation. Stock market manipulations can be prevented through more modernization, accelerating the inter connectivity and ensuring the availability of more relevant information. As for the Capital Market Fair, we will hold four high-end seminar topics centered around contemporary capital market issues. The honorable chairman of the Bangladesh Security Exchange Commission will grace the occasion as our Chief Guest. Coinciding with this event we shall observe the 20th anniversary of Chittagong Stock Exchange.
Our Capital Market is heavily rumor influenced. How can we raise the awareness of investors so they don’t make decision based on just rumors?
That is an area that still needs to be worked on. An investor might be fooled if he lacks financial literacy and knowledge. Due to this lack of knowledge he is driven mostly by hearsay and speculations. Having patience and remaining steady are something that investors need to learn when dealing with the capital market. If you buy a share of a company, stick with it as a shareholder. A partner for a day or two does not help the company to form and grow its capital. If the company gets the investment for a longer term it can utilize it better. If the company does not get the benefits of long term investments how can one expect dividends from that company.
What will be the impact of Demutualization?
It is very simple. After demutualization 25 % of CSE shares are to be bought by a strategic partner. This strategic partner should be alone be able to bear 25 % of the share. To attract a good partner of such a stature CSE has had to raise its business capital, capability and turnover. If the Exchange has an image problem or poor financial performance, then it will be difficult to get a sound strategic partner.
What is your plan to educate the SME traders in the Bourse?
For the SME traders our Managing Director has prepared a working paper. We are working seriously for wooing the SME traders in the market to educate them. The Capital Market Fairs is being organized to educate the SME traders also.
You are trying to branding Bangladesh abroad?
We are striving to rope in both local and foreign investors. We have facilities of internet trading, online trading and we are searching strategic partner. After demutualization, administration is separated from business. One of our foremost tasks is to activate the inactive stake holders. We are aware of the thresholds, benchmarks and bars and rules and regulations and continuously we trying to comply.
The second way is to tie up with the right kind of strategic partners. We have taken various activities in that pursuit and we are in dialogue for establishing good relationship with big stock markets of the world. We are in communication with stock markets in Singapore, and London.