The government is working to lift the economy and capital market out of their current困境, he remarked at the opening ceremony of World Investor Week held at the Krishibid Institution in Dhaka.
The Bangladesh Securities and Exchange Commission (BSEC) organized the week‑long event, which runs through October 12.
Mr. Khosru noted that the capital market has historically lacked the policy focus and coordinated backing essential for sustainable growth.
He pointed out that post‑independence initiatives launched by former President Ziaur Rahman to develop the Dhaka Stock Exchange and broaden mutual‑fund offerings were visionary, yet their momentum faded over time.
Consequently, the market did not benefit from comprehensive policy and institutional support, with reforms often implemented in a fragmented manner.
“As a result, the capital market never achieved the growth it deserved,” Mr. Khosru said.
Instead, both the government and private sector grew excessively reliant on commercial banks, frequently borrowing at high interest rates.
The minister highlighted weak coordination among financial regulators as another significant structural weakness of the capital market.
“Each regulator operated in isolation, never coordinating with others—a shortcoming of our capital market. Today, all regulators meet monthly to align their efforts,” he said.
He urged stronger coordination among the BSEC, Bangladesh Bank, the National Board of Revenue (NBR), the Insurance Development and Regulatory Authority (IDRA), stock exchanges, brokers, and financial‑reporting entities.
Describing Bangladesh’s capital market as “shallow,” Mr. Khosru emphasized that building adequate market depth is crucial for attracting high‑quality companies and investors.
“Without market depth, where will turnover come from? You must create that depth,” he said.
He also noted that fundamentally strong companies with sound governance are reluctant to join a market viewed as a “casino.”
“No reputable firm will list in a ‘casino.’ Companies that value good governance and practice self‑regulation will stay away from such an environment,” he said.
The minister urged market participants to bolster self‑regulation, professionalism, transparency, and credibility instead of depending heavily on regulatory intervention.
“A financial system functions only when stakeholders learn to self‑regulate; that is how trust and credibility are built,” he said.
Speaking at the event, BSEC Chairman Masud Khan said the prolonged IPO drought is beginning to ease, as several local and foreign companies prepare to enter the market.
“We are seeing signs that the IPO drought is ending; a number of local and foreign companies have initiated the process of listing,” he said.
Mr. Khan noted that lengthy approval procedures have discouraged companies from seeking capital‑market financing.
Previously, IPO approvals could take one to one-and-a-half years; the current commission has streamlined the process, targeting approvals within three months.
“The commission has simplified the process, and an IPO is now approved within three months,” he said.
The BSEC has also revised direct‑listing rules to permit selected, well‑established, financially sound companies to enter the market via this route.
It is also working to empower the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) in the listing process and to adopt internationally accepted valuation methods to attract multinational corporations and large local firms.
The commission has introduced a hybrid listing model that lets companies raise fresh capital from the public while allowing existing shareholders to sell a portion of their holdings, according to the BSEC chief.
Mr. Khan also urged expanded surveillance to detect scams, misleading information, social‑media‑driven manipulation, and other harmful activities occurring outside the traditional market framework.
Insurance companies and mutual funds could become major investors in corporate bonds, creating opportunities for long‑term fixed‑income investment and helping to deepen the market.
The BSEC is also working to introduce derivatives and to strengthen the legal and regulatory framework.
Financial Institutions Division Secretary Nazma Mobarek said restoring investor confidence is the top priority for the capital market and called for stronger investor protection and surveillance.
IDRA Chairman Mir Nadia Nivin said insurers could play a transformative role in deepening the capital market as long‑term institutional investors.
Life insurers, given their long‑term liabilities, could invest in government securities, corporate debt, infrastructure instruments, and equities, thereby supplying long‑term capital and enhancing market depth.