Khaleda Zia strengthened stock market foundation

Former prime minister Khaleda Zia made a significant contribution to building the institutional foundation of Bangladesh’s capital market by introducing supportive policies and establishing regulatory bodies, according to market leaders.

The Dhaka Stock Exchange (DSE) and the DSE Brokers Association of Bangladesh (DBA) jointly organised a doa mahfil yesterday to mark her departure on December 30.

DSE Managing Director Nuzhat Anwar said, “Khaleda Zia was a resolute and visionary leader whose contributions to the country’s economic development remain particularly memorable.”

She added that during her tenure, the Bangladesh Securities and Exchange Commission (BSEC) was established in 1993, playing a key role in strengthening the institutional foundation of the capital market.

“Her presence at the award ceremony on March 2, 1994, where the top ten listed companies of DSE were honoured with national awards, is an important example of state recognition of the industrial and corporate sector,” Anwar said.

“Khaleda Zia was a humane politician who always respected opposing views,” said Saiful Islam, president of DBA.

By opening the capital market to foreign investors in 1991, she ushered in a new chapter for the sector. “It was her visionary decision that paved the way for the modern capital market of today,” he added.

Although challenges remain, the BSEC continues to protect investors and improve the market established during her tenure. “With that, the stock market came under the control of the regulatory body,” Saiful Islam said.

Under her leadership, financial institutions began getting listed thanks to favourable policies. The market crashed in 1996, mainly due to fake paper shares. After returning to power, Khaleda Zia established the Central Depository Bangladesh Limited (CDBL), he added.

“In 2003, the CDBL started commercial operations, which helped end the paper-based share market era in Bangladesh,” the DBA president said.

“So, she made an enormous contribution to the stock market. During her tenure, a market-based exchange rate was also introduced for the first time, which boosted the economy,” he added.

“The contributions of Khaleda Zia to Bangladesh’s economy and various other sectors were unique and outstanding,” said DSE Chairman Mominul Islam.

He added that the foundation of Bangladesh’s market-oriented, private sector-driven economic framework was laid during her tenure.

“The extensive expansion of the private sector that began in 1991 is now benefiting the country’s people. At the same time, her role in establishing discipline and building institutional structures in the capital market and financial sector was highly significant,” the DSE chairman said.

Khondoker Rashed Maqsood, chairman of the BSEC, was also present at the event.