Capital raising association seeks policy support

BSEC can help boost startup, capital raising ecosystem

The CAPITAL RAISING and Private Equity Association of Bangladesh (VCPEAB) on Wednesday sought policy support from regulators to produce a sustainable venture capital industry.

They also put focus on the probability of contribution by venture capital and private equity investments to boost trade, innovation, export, and help create homegrown startups that may donate to the securities market in Bangladesh.

The leaders of the sector made the demand at a virtual ending up in Prof Shibli Rubayat-Ul-Islam, chairman of Bangladesh Security Exchange Commission (BSEC).

Shameem Ahsan, chairman of VCPEAB and general partner of Pegasus Tech Ventures (formerly Fenox Venture Capital), led the visiting delegation.

He sought policy support from the BSEC to expand the scope of capital raising and private equity industry, to ensure that they could contribute to the country's economy through their investment in ground breaking startups.

He also mentioned that with proper support, these startups could create an ecosystem that could contribute up to 2% of Bangladesh's GDP by 2025.

BSEC chairman Prof Shibli Rubayat-Ul-Islam pledged to work with the VCPEAB on policies to nurture the emerging industry.

“The BSEC is constantly attempting to make the investment environment easier and transparent in our country. We will surely accommodate relevant changes that are essential for the venture capital and private equity enterprises,” he added.

BSEC Commissioner Dr Shaikh Shamsuddin Ahmed said they will give a myriad of support to increase the startup and venture capital industry in Bangladesh.

Shawkat Hossain, general secretary of VCPEAB, presented a keynote with respect to the association to talk about the policy reforms essential to develop the venture capital and private equity industry.

“We can see our current policy has many drawbacks when compared to policies followed worldwide. From VCPEAB we are proposing amendments and additions to our current structure to materialize a business conducive to creating local startups,” said Shawkat.

Arif Khan, CEO of IDLC Finance Ltd and member of VCPEAB, centered on widening investment opportunities and amending policies to help make the industry more lucrative for investors.

There is a have to make the investment environment well suited for both local and foreign investors, outlining both investment and exit strategies. This will create long-term investments feasible for the funds, he suggested.

Waliul Marrof Matin, director of VCPEAB, said that few major guidelines were missing, thus creating barriers for investing properly. 

These policies have to be more investment-friendly for the fund managers, he observed. 
Source: https://www.dhakatribune.com

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