http://www.iaeme.com/IJM/index.asp 264 editor@iaeme.com
International Journal of Management (IJM)
Volume 11, Issue 7, July 2020, pp. 264-281, Article ID: IJM_11_07_026
Available online at http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=7
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
DOI: 10.34218/IJM.11.7.2020.026
© IAEME Publication Scopus Indexed
HOW TO INCREASE THE DEPTH OF THE
SHARE MARKET IN BANGLADESH: AN
APPLICATION OF THE MULTINATIONAL
COMPANIES
Dr. Nasir Uddin
Associate Professor, Bangladesh Institute of Capital Market,
Dhaka-1000, Bangladesh
E-Mail: dr-nasir@bicm.ac.bd
[N. B.: Views expressed in this article are author’s own]
ABSTRACT
The objective of this study is to suggest policies to increase the depth of the share
market in Bangladesh. To achieve the objective, this study considered all of the major
MNCs operating business in the country based on primary data and secondary data.
The major findings are no MNC has listed after 2010, Reckitt Benckiser, Glaxo
SmithKline, Bata, and Linde are low paid companies & have not increased their paid
up capital after 1996, many listed MNCs have offered a small proportion of share to
the public, at least eleven MNCs, and eleven financial institutions (FIs) operating
business in Bangladesh (BD) successfully, are listed in at least one of the countries
but not listed in BD, many other MNCs have ability to be listed, corporate tax rate is
very high, and the non-listed MNCs making the rich richer in BD. The study suggests
reduction in tax rate, further reduction in tax rate, ensuring tax cut is reinvested,
widening tax net, ensuring mandatory listing, imposing double interest rate for MNCs,
listing top companies: listed in neighboring country but not listed in BD & other
reputed MNCs and Bangladesh Petroleum Exploration & Production Company
Limited (BAPEX); increase in paid up capital, off-loading more share, reduction in
listing lead time, ensuring good corporate governance, showing government
willingness, imposing conditions of listing to new MNCs, and ensuring accountability
of the merchant banks will increase the depth of the share market in the country.
Key words: MNCs, IPO, Tax Rate, Law, Interest Rate
Cite this Article: Dr. Nasir Uddin, How to Increase the Depth of the Share Market in
Bangladesh: An Application of the Multinational Companies, International Journal of
Management, 11(7), 2020, pp. 264-281.
http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=7