Overregulation stifles growth of capital market

Excessive regulatory control is negatively affecting the capital market, said BNP Standing Committee Member Amir Khasru Mahmud Chowdhury yesterday, calling for a more streamlined and investor-friendly approach to ensure stability and growth.

He made the remarks while addressing a workshop titled "Operational Framework of Commodity Derivatives Market and Its Business Prospect", organised by the Chittagong Stock Exchange (CSE).

"The capital market cannot flourish under excessive regulatory pressure. Overregulation is deterring growth and confidence," he said, urging automation and transparency across all government procedures involving investment and trading.

Referring to future governance plans, the former commerce minister stressed the need to eliminate physical contact between citizens and government institutions in service delivery.

"As long as physical contact exists, corruption will persist. We envision a system where everything is accessible from home. Citizens will receive all services without needing to physically visit any office," he said.

Khasru further stated that the BNP, if in power, would fully digitalise the investment process, allowing investors to track their files in real time from anywhere in the world.

Citing examples, he said, "It should take no more than half an hour to exit an airport. If it still happens, someone must be held accountable."

"Similarly, containers at the Chattogram port must be cleared with minimal turnaround time. These steps will build global confidence in Bangladesh's economy," he said.

The BNP leader also noted that investors abroad of Bangladeshi origin are showing strong interest in investing in their home country.

In a commodity derivatives market, participants can trade contracts based on the future prices of goods such as agricultural products, metals, and energy, said CSE Chairman AKM Habibur Rahman.

Chairing the workshop, Rahman presented a framework outlining how such a market could function smoothly, ensuring transparency, risk management, and efficiency.

The launch of a commodity derivatives market would deepen the country's capital market by creating new investment avenues and attracting both local and foreign investors, he said.

CSE shareholder directors Akhtar Parvez and Major (retd) Emdad, CSE Managing Director M Shaifur Rahman Mazumdar, and international commodity market expert Kathir Kamanathan Annamalai also spoke at the event.