Page: 1325-1332. Problems and prospects of capital market in Bangladesh.

SYED NAZMUL HUDA1* and ASMA AKTER2

1=Lecturer, School of Business, 2Lecturer, Department of Economics, Asian University of Bangladesh, Dhaka, Bangladesh. Email: akterasma73@yahoo.com. *Corresponding author’s Email: nazmulaub@hotmail.com.

ABSTRACT

This study is an attempt to review and to critically evaluate the role, current scenario, problems and prospects of capital market in Bangladesh. Our government is very much concerned about capital market. That is why it has given priority to capital market in the national budget for the last few years. Yet it is not possible for the government alone to ensure the development of capital market in our country. The existing status of the capital market in Bangladesh is hardly in a position to play as mobilizer of resources for economic development Information has been collected from secondary data during 2004 to 2010 along with identifying the major influencing factors and problems. Due to some problems capital market in Bangladesh has been facing the market crash in recent years. The study was done to identify the obstacle to rising the capital market and analyze the influential factors to overcome problems as well as to develop the capital market and also return to the past emerging market capitalization in Bangladesh. The authors also represent some recommendations to minimize the market crash.

 Keywords: Dhaka stock exchange (DSE) and Chittagong stock exchange (CSE).