INVESTIGATING THE PRESENT CAPITAL MARKET CRISIS AND RECOVERY STRATEGIES IN BANGLADESH

Capital market crisis has become a burning issue for Bangladesh after the crash of 2010. Considering this importance the study analyzed the crisis of present capital crisis and its recovery strategy through a quantitative research method. For analysis, 100 structured questionnaires were analyzed who were selected from Lanka Bangla Securities Limited in Chittagong. A convenience sampling technique was used for the study. The result indicates that prime reasons of crisis in the capital market of Bangladesh are frequent changes in regulatory policies, liquidity crisis, unwillingness of institutional investors to invest, lack of confidence and patience among investors. Stability in the financial sector, strong policy formulation, ensuring transparency and inclusiveness, revising rules and regulations of SEC are the important strategies, according to respondents, to overcome capital market crisis. This finding implies that developing and ensuring stability in capital may contribute to the overall economic development of the country as a whole. Therefore, the outcomes of the study bring out implications for the government, regulators, and policy makers to uplift the capital over crisis.