Experts and stakeholders spoke in favour of revising the bank's exposure to the capital market and extension of timeframe for adjusting over exposure for bringing back normalcy in the capital market.

They also said the securities regulator should ensure proper utilisation of IPO (initial public offering) funds for the sake of investors' interest as well as the companies' growth.

They were speaking at a seminar titled 'Bangladesh's Economy and Prospect of Capital Market' jointly organised by Chittagong Stock Exchange (CSE) and a vernacular daily at a city hotel Monday evening.

Dr. Mashiur Rahman, Economic Affairs Adviser to the Prime Minister, said the capital market may face problems if the banks' investments are withdrawn rapidly.

"Banks' investments made in non-listed securities are included in exposure limit whimsically. It is also out of logic to include banks' equity investments, made in subsidiaries, in their exposure," Mr. Mashiur said.

He stressed on diversification of investors' portfolios, long term investment and investments based on sufficient funds.

Dr. AB Mirza Azizul Islam, a former adviser to the caretaker government, said the demand of revising the strategy of calculating the bank's exposure to the capital market deserves consideration.

"The inclusion of bank's investments, made in non-listed securities, in the exposure is out of my thought," said Mr. Islam, who has also stressed on the quality of IPO rather than quantity.

Mr. Islam, also the former chairman of the securities regulator, said the regulator should look into the use of IPO funds as investors are being deprived of dividends.

The central bank has asked the banks to adjust their over exposure by July, 2016.

M A Mannan MP, the State Minister for Finance and Planning, said reforms have been accomplished by the securities regulator for the development of the capital market.

"The size of our economy is increasing gradually. The issue of economic growth should be prioritised by solving other problems gradually," Mr. Mannan said.

Another former chairman of the securities regulator Faruq Ahmad Siddiqi said the timeframe of adjusting over exposure should be extended considering the dept of banks' over exposure.

The chairman of the securities regulator Prof. M Khairul Hossain said the incumbent regulator brought many reforms in the securities rules along with introducing market surveillance software.

"The capital market plays a role in maintaining social disciplines. Other stakeholders such as merchant banks and asset management companies have also role in ensuring due diligence in IPO issues," Mr. Khairul said.

CSE Managing Director Wali-ul Maruf Matin made his keynote speech at the very beginning of the seminar.

In his speech Maruf highlighted recent developments in the country's economy.

CSE chairman Dr. Muhammad Abdul Mazid, ICB Managing Director Md. Fayekuzzaman, Bangladesh Insurance Association chairman Sheikh Kabir Hossain, DSE managing director Dr. Swapan Kumar Bala, ICAB President Masih Malik Chowdhury, Meghna Bank managing director Mohammed Nurul Amin, among others, spoke at the seminar.