Kamruzzaman Bablu :
Although the participation of women in the country’s economic activities has seen significant growth in recent years, the stock market has witnessed a consistent decline in the number of female investors.
Data from the Central Depository Bangladesh Limited (CDBL) reveals a sharp decrease of 2,55,408 (37.17 percent) in the number of women investors over the past three years.
On March 8, 2021, there were 6,87,090 women with Beneficiary Owner (BO) accounts in the stock market.
However, by March 6, this number dwindled to 4,31,682, marking a decline of 37.17 percent or 2,55,408 female-owned BO accounts in three years.
Analysts point to regulatory changes as a significant factor behind this trend. Before 2020, many BO accounts, including those owned by women, were primarily used for applying to Initial Public Offerings (IPOs).
The imposition of a new rule by the Bangladesh Security Exchange Commission (BSEC), requiring a minimum investment of Tk 50,000 in the secondary market to qualify for IPO applications, led to a dramatic decrease in BO accounts.
Previously, it was common for male investors to open BO accounts in the names of female family members for IPO subscriptions. This practice has been curtailed, contributing to the reduction in female-owned BO accounts.
CDBL data further shows a year-on-year decline in the number of women BO holders: 1,72,679 in 2022, 57,965 in 2023, and 24,764 in 2024.
Mohammad Rezaul Karim, Executive Director and Spokesperson of BSEC, acknowledges the decrease in women’s BO accounts due to several factors, including regulatory changes aimed at curbing the misuse of IPO applications.
“It is true that the number of women’s BO accounts in the capital market has decreased for many reasons though the their number in investors has slightly increased,” he said.
However, he remains optimistic about future growth, citing efforts to encourage the participation of women in the stock market.
The BSEC is actively working to increase the number of female investors, entrepreneurs, and workers within the stock market ecosystem. This encouragement aims to have a ripple effect, boosting overall investor numbers.
Under current BSEC rules, an investor is allowed to open up to two BO accounts, in single or joint names, with each brokerage house, allowing for a total of 20 BO accounts across 10 brokerages.
However, for IPO applications, an investor can only use two of these accounts, provided there is a minimum investment of Tk 50,000 in the secondary market for each.
