Kayes M Sohel

from Chittagong

Reputed entrepreneurs of Chittagong are gradually looking at the stock market as an alternative source of fund mobilization for their new business set-ups and the on-going 3rd CSE Capital Market Fair is giving them the opportunity to gain the knowledge.

Experts see their interest on stock market as a sign of enrichment and depth of the country's stock markets as the cheaper source of fund raising than banks.

"Stock-market is the cost-effective and tension-free means to finance new-business set-ups and expansion," Abdus Salam, senior vice-president of Chittagong Chamber of Commerce and Industry (CCCI), told FE.

"Usually, entrepreneurs like me go to the banks and other financiers for taking credit at higher interest rate and after getting loans, they always remain in tension to repay the loan in time before going into production," said Mr. Salam, also a reputed industrialist in Chittagong.

"If I, as an entrepreneur, raise funds from the stock market at low interest, then there is need for me to go to the bank," he said.

The CCCI boss also said, "Initiatives have also been taken to encourage other entrepreneurs to list their industries with the stock exchanges.

He, however, said the rules and regulations should be industry-friendly so that the entrepreneurs can easily raise capital from the stock market.

Ziaul Haque Khondker, chairman of Securities and Exchange, inaugurating the Third CSE Capital Market Fair at the Chittagong Club auditorium previous day called upon the big Chittagong-based companies to list with the stock exchanges.

Although some big companies from the region such as S Alam Group and BSRM are listed, there are many others yet to be listed.

PHP, KDS, Mostafa Group and BSA are some of the big Chittagong giants that are not listed with the stock exchanges, although they often borrow from the banking sector or other financiers.

Mohammed Akther Parvez, director of PHP Group, said they are already in process to list some of their companies with the stock exchanges.

"PHP Float Glass Industries would be listed first," he said, adding that they are also working to bring products such as mutual fund for the stock market.

Saiful Alam Masud, chairman of S Alam Group, said the SEC's plea will encourage many Chittagong-based entrepreneurs to raise fund from the stock market. "They (entrepreneurs) will start thinking about the issue."

"Listing of big industries will increase the market depth further. Not only that, both the entrepreneurs and investors will be benefited," he said.

Meanwhile, the two-day capital market fair, organsied by Chittagong Stock Exchange, ended yesterday with huge response.

A total of 30 institutions, including CSE Brokerage firms, merchant banks, leasing companies, banks and other CSE listed companies with their products and services participated in the fair.