The Dhaka Stock Exchange (DSE) is currently focusing on four key tasks, one of which is to bring reputable companies to the capital market to restore investor confidence, DSE Chairman Mominul Islam said today.

Additionally, the premier bourse is working to ensure tax benefits for investors and prevent insider trading, he added.

"We have zero tolerance for insider trading," Islam said at the 'CMJF Talk,' organised by the Capital Market Journalists' Forum (CMJF).

"Everything will be futile if we cannot ensure confidence among investors. For this reason, we are working with some short-term plans," he noted.

Islam expressed hope that dynamism would return to the capital market by next June.

The chairman's remarks come at a time when the stock market is experiencing a bearish trend because of limited participation from institutional and retail investors.

The DSEX, the benchmark index of the DSE, fell by 1,026.43 points, or 16.44 percent, to 5,216.44 on December 30, the last trading day of 2024, compared to 6,242.87 on the first trading day of the same year, according to the DSE data.

Islam mentioned that the government's taskforce for capital market reforms is identifying past irregularities.

"Reforms have already begun, and some measures will be completed by June. These steps will help restore investor confidence," he said.

Elected to his post in early October last year, the DSE chairman stated that the exchange has also devised long-term plans to transform the capital market into a vibrant one.

"However, it will take some time to see the results," he said.

Bangladesh's stock market has not advanced as much over the past 15 years under the Hasina-led Awami League government, but, during the same period, global markets have made significant strides, he said.

"The stock market has failed to play its due role in the economy. We are far behind expectations. The bourses have faced numerous challenges, including undue regulatory interference," he said.

Previously, the Bangladesh Securities and Exchange Commission's (BSEC) prior approval was mandatory for the DSE to take any initiative, making it difficult to monitor listed companies effectively.

"We have resolved many of these issues," he stated.

Monitoring will be strengthened for companies with weak fundamentals, but the problem is most of the listed companies have weak fundamentals, he said.

"It is challenging to oversee all these weak companies simultaneously," he said.

He added that steps are being taken to delist companies that should not have been allowed to float shares to the public.

Despite having an electronic trading platform that meets global standards, the DSE faces technical challenges due to process-related limitations, Islam pointed out.

"Such incidents will reduce significantly once standard protocols are established," he said.

The DSE is also engaging with multilateral lenders, including the International Monetary Fund (IMF), to develop the market, Islam said.

Additionally, the Dhaka bourse will seek cooperation from various agencies, including Bangladesh Bank.

CMJF President Golam Samdani chaired the event, which was moderated by General Secretary Abu Ali.