Capital Market of a country is one of the important indicators of the strength of economy and the rules and regulations of Capital Market are also are the indicators of investment environment as the rules and regulations ensure the healthy competition among the companies those are registered with the  stock exchanges. The regulations also keep protected the interest of investors indiscriminating the size and volume.

To ensure the appropriate investment environment it is essential to put a clear binding for the companies that are which companies would be registered with the stock exchanges for trading.  

In Bangladesh the categories of the trading organizations are Company under single Proprietorship, Company under Partnership, Private Limited Company and Public Limited Company. Only Public Limited Companies are entitled to go for issue share for the public under stock exchange regulations.  Earlier it was unclear that which companies should go for public to accumulate capital by issuing shares. Presently the authority has gone for a principle for the issuance of share.

A recently published news report has said that Public Limited Companies -PLCs with a paid-up capital of Taka point 5 billion or more will have to go for initial public offerings -IPOs, a move to increase the supply of quality shares to the market. The PLCs will have to apply for IPOs within one year of reaching or exceeding Taka point 5 billion in the paid-up capital, according to a notification issued by the Securities and Exchange Commission -SEC, the news reported added.  Chairman of SEC, Ziaul Haque Khondker has said that "there are many big and profitable companies that are yet to be listed with the stock exchanges, and every company needs capital to run the operation. The commission took the initiative so the companies raise the necessary capital from the market,". And the initiative is widely appreciated by the investors, especially by the small investors of the market.

Another policy intervention from the government on agriculture sector vitalization has appreciated by the economists and development of the country. As the agriculture is the backbone of the national economy ant the farmer community of the country is the key player of the national economic activity, the government was committed to develop the agriculture sector. In view of this commitment the government, under the leadership of Prime Minister Sheikh Hasina, is to introduce crop insurance, which will protect the interest of agriculture growers in case of crop failure.  A recently published news item has mentioned that the government will frame a policy on crop insurance to hedge growers against the risk of losses from crop failure in the wake of natural disasters. This was said by the chief of a parliamentary body. The news report added that Shawkat Momen Shahjahan, chairman of the parliamentary standing committee on agriculture ministry told that “The idea of crop insurance is new in Bangladesh.. That’s why a policy will be formulated based on the experiences of the neighboring countries,”  The lawmaker unveiled the government plan after Finance Minister AMA Muhith said steps have been taken to introduce agriculture insurance to provide small and medium farmers with price support for the crop losses caused by natural disasters.

Meanwhile Finance Minister AMA Muhith said people must get used to paying more taxes on domestic production and wealth to help the government raise resources to invest in public welfare. The minister’s remark came at a dialogue organized by the think tank Centre for Policy Dialogue -CPD on the state of the economy and responses to the fiscal 2010-11 budget. Two points emphasized in the ruling Awami League’s charter for change before the election are: create a habit of saving and raise domestic resources for investment, according to Muhith. It is appreciating that government is keen to do many things for the common people of the country and it is also appreciating that the government is emphasizing on domestic earning. But many of the concerned people have said that a people oriented and simple taxation procedure is important to enhance the domestic earning.    

Investment proposal is a key indicator to judge the dynamics of an economy. A recently published news item has mentioned that Proposals for setting up 2,249 industries were registered with the Board of Investment -BoI in the last 17 months up to March with an estimated investment of Taka 362 point 63 billion.  Industries Minister Dilip Barua informed this to the parliament recently. The minister also expected that employment of 2 point 35 million people will be created through public and private investment in the small and cottage industry sector under the sixth five-year plan (2011-2015). The development professionals mentioned that these are good indications to the economic growth.  #