Stock brokerage firms have urged the government to form a taskforce for the capital market to support its growth and to carry out necessary reforms.

The DSE Brokers Association of Bangladesh (DBA) made the demand in a letter sent to the finance adviser today.

Despite the long-time presence of the Dhaka Stock Exchange (DSE) and Bangladesh Securities and Exchange Commission (BSEC), the stock market still lags from becoming a source of capital formation, according to stock brokers.   

So, establishing a taskforce like the banking sector may work well to develop the market and complete essential reforms, the DBA said in the letter. 

It said capital market growth remains stuck due to inappropriate policies, adverse management of asset management companies, proper pricing in initial public offering, and absence of proper direction for diversified products.

That is why there should be medium- and long-term targets for growth and product diversification of the stock market is crucial to finance big infrastructure projects of the government, according to the association.  

Besides, the government should take steps to turn the savings of local and non-resident people into investment and a diversified stock market can be a safe investment option, said the letter.