Dhaka, Nov 14 (bdnews24.com) – Former finance adviser AB Mirza Azizul Islam has called for a 'hands off' approach to the capital market, saying intervention should occur only for the sake of investors.

Islam, a former chairman of the Securities and Exchange Commission, also complained that many government officials do not have a proper understanding of the workings of the market.

"There shouldn't be regular intervention … there should be no intervention unless absolutely necessary," Islam said launching a workshop on the capital market Saturday, organised by Dhaka Stock Exchange and the Economic Reporters Forum.

"It is true that the market occasionally sees unexpected or abnormal movements."

"In this case, the government or regulator should intervene only for the sake of investors," he said.

Expressing satisfaction with the current market situation, Islam said: "The price index is rising and transactions are also increasing."

"Grameenphone is offloading shares. Investor confidence is building … I hope the capital market will see growing success in coming days."

Praising the government, he said: "The government wants to take the capital market to a better position.

But, he lamented, the market was still neglected as an instrument for economic growth.

"Many officials do not have a sufficient idea about the share market," he said, mentioning the delay in floating public companies.

"They do not realise that the capital market can play a crucial role in economic development."

He said the government should take measures to educate the concerned officials about capital market.

Islam replied in the negative when asked whether there was any fear of a large fall in the capital market as in 1996.

"There is a great difference between the market then and the market now. Shares were sold on paper, but now everything happens online."

"So there is no chance of the kind of past manipulations now," he said.

DSE president Raqibur Rahman, economist Abu Ahmed and ERF president Nazmul Ahsan also spoke, among others.

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