Experts urge stronger tech, oversight in capital market

Bangladesh needs to strengthen both the use and monitoring of technology to create a more transparent and efficient investment ecosystem in the share market, according to experts in the capital market.

They made the remarks yesterday at a seminar on technology and digital finance, organised jointly by the Dhaka Stock Exchange (DSE), the Chittagong Stock Exchange (CSE), the DSE Brokers Association of Bangladesh (DBA), and Central Depository Bangladesh Ltd (CDBL), following World Investors Week from October 6 to 12.

BSEC Commissioner Md Saifuddin said, "We must clearly understand where we stand in building a complete investment ecosystem. Identifying our technological gaps, structural weaknesses, and accountability issues is essential."

He noted that the disclosure of information remains one of the market's biggest challenges, causing long-standing difficulties for investors.

"There is still a lack of proper coordination among exchanges and institutions such as CDBL and CCBL. It is time we all work together," he added.

Highlighting a new initiative, Saifuddin said the BSEC has introduced the Extended Extensible Business Reporting Model, a machine-readable financial reporting format aligned with international standards.

"This will make research, analysis, and supervision much easier, but it requires the full cooperation of auditors and all stakeholders," he said.

CSE Chairman AKM Habibur Rahman warned that despite automation, some irregularities and scams have still occurred, indicating that technological application and monitoring are not yet fully effective.

He stressed that the core purpose of technology is to enhance efficiency, transparency, and productivity. To achieve this, reporting, surveillance, and monitoring systems must be strengthened.

Rahman also noted that over 75 percent of Bangladeshis have limited financial literacy, making them vulnerable to misinformation. While technology helps, investor awareness and knowledge remain crucial, he said.

DSE Chairman Mominul Islam said the bourse has made "large investments in technology," but the expected benefits are yet to materialise due to a "lack of coordination among capital market stakeholders."

He added that without a free flow of information, even the most advanced technological systems cannot trigger necessary actions.

DBA President Saiful Islam, who presented the keynote, emphasised that "emerging technologies and digital finance have opened new horizons for investor empowerment in Bangladesh's capital market."

However, he cautioned that many investors still face risks due to misinformation, low financial literacy, and complex financial products.

Artificial intelligence, blockchain, data analytics, and robo-advisory are revolutionising the market, Islam said, adding that these technologies make investment decisions more data-driven and secure while enhancing market transparency and efficiency.

He outlined four key strategies for empowering investors: education and awareness, digital risk management tools, inclusive participation, and transparent information disclosure.

Md Abdul Motaleb Chowdhury, managing director and CEO of CDBL, Mohammad Kamruzzaman, director of the DSE, along with other senior officials from several stock brokerage firms, also spoke at the event.