& çâÌæÚUæð´ ·¤è ¥ôÚU Îð¹Ùæ ÁæÚUè ÚU¹ð´ ¥ÍæüÌ ¥ÂÙð ÜÿØ ÂÚU ŠØæÙ ÚU¹ð´Ð ãæÚU Ù ×æÙð´, €UØô´ç·¤ ·¤æ× ·¤ÚUÙð âð ¥æÂ·¤ô ©gðàØ ·¤è Âýæç# ãôÌè ãñ ¥õÚU ÁèßÙ ·¤æ ¹æÜèÂÙ ÎêÚU ãôÌæ ãñÐ ÖÜð ãè ÁèßÙ ×ð´ ç·¤ÌÙè Öè ·¤çÆÙæ§ü €UØô´ Ù ¥æ°, çÁ™ææâæ ¥õÚU ©ˆâæã ÕÙæ° ÚU¹ð´Ð ŠØæÙ ÚU¹ð´, ÜÿØ ã×ðàææ ¥æÂ·Ô¤ Âæâ ãôÌð ãñ´ çÁ‹ãð´ ÂæÙð ·Ô¤ çÜ° ÂýØæâ ¥æÂ ·¤Öè Öè àæéM¤ ·¤ÚU â·¤Ìð ãñ´Ð

ICB’s privatisation proposal opposed

By Imtiyaz Husain
Many of the share issues in past several month* in the primary market have survived with intervention by Investment Corporation of Bangladesh 0CB|
Dally transaction level on the floor of Dhaka Stock Exchange has meanwhile remained very low Such a low level, as at Taka 3 09 lakh as on Tuesday (October 15. 91) can hardly justify an acceptable one for any fund.
In this context, the news item (which was published in some national dallies in their issue* on October 10. 1991). about the proposal of Asian Development Bank (ADB) to privatise ICB has drawn the attention of all concerned opera tors involved in the country's capital market
The proposal, as the news item indicates, purports that ICB has a monopoly in invest ment banking; that tt should undertake Joint venture with a reputed.
ICB. it is true, has a monopoly in investment brokerage house to make tt more responsive to investment banking requirements of the private sector that It has an exclusive right to establish mu tual funds and that as a result of such acts three private sec-tar inYtiuacnl mnaaaKi la,
particular and the capital mar EX-1"*""
But serious doubts persist the panaers for all economic ills Those who want to extend support to help develop the country's capital market should endeavour to do a better task at least as far a* facts about the status of Investment banking business, the capabil tty of the stock market and the
companies. With very superficial understanding of the financial markets and or^nisa Uons. no one should lump IPDC along with BC1 and NCI.
ICB. to mention, has already paaaed through a privatisation phase years ago If private see tor had participated, a large chunk of its shares would not have been bought by several NCBs and Sadharan Btma Corporation, who are presently sitting on ICB* Board of Directors as surrogates for the private sector There is no doubt that the financial role of the private sector participation should Increase. And of course the best way to do It would be buy ICB shares which are presently quoted at a discount rate of Taka 92 The first step for the private sector would be to sweep the market for these
doe* not have a monopoly on the investment banking business. It is open to banks, insurance companies and of course the two investment companies which have reportedly done every thing other than Investment banking. Whereas the presence of IPDC has been favourable which as been developing a growing loan and equity portfolio Also no one is aware of any application to set up a mutual fund of any kind.
Unfortunately. ICS's marketing and investment capabilities will not be aroused solely by divesture of shares. Reorganisation of capital base shall achieve nothing unless human resource developments are infused in the organisation. ICB need* leadership which can generate dynamism in its goal and objectives. Venturing with local brokerage firms which neither have resource nor technology would be disastrous. ,
Reduction of the 20% ICB quota which has a historical linkage with its precursor organisation National Investment Trust Company Ltd. would not serve any effective purpose in view of low levels of DSE dally transactions.
Any kind of intervention in the country's capital market should be well though and planned. The private sector would continue to desire as little of it as possible. Many of my colleagues In the stock exchange may disagree because they have known nothing better.
(The contributor Imtiyaz Husain. Is a member of Dhaka Stock Exchange. He was the former Vice-Chairman of DSE. In this write-up. he expresses his personal opinion about the proposal, reportedly made by a multilateral funding organisation. to privatize ICB.)