HOW TO INCREASE THE DEPTH OF THE SHARE MARKET IN BANGLADESH: AN APPLICATION OF THE MULTINATIONAL COMPANIES

The objective of this study is to suggest policies to increase the depth of the share market in Bangladesh. To achieve the objective, this study considered all of the major MNCs operating business in the country based on primary data and secondary data. The major findings are no MNC has listed after 2010, Reckitt Benckiser, Glaxo SmithKline, Bata, and Linde are low paid companies & have not increased their paid up capital after 1996, many listed MNCs have offered a small proportion of share to the public, at least eleven MNCs, and eleven financial institutions (FIs) operating business in Bangladesh (BD) successfully, are listed in at least one of the countries but not listed in BD, many other MNCs have ability to be listed, corporate tax rate is very high, and the non-listed MNCs making the rich richer in BD. The study suggests reduction in tax rate, further reduction in tax rate, ensuring tax cut is reinvested, widening tax net, ensuring mandatory listing, imposing double interest rate for MNCs, listing top companies: listed in neighboring country but not listed in BD & other reputed MNCs and Bangladesh Petroleum Exploration & Production Company Limited (BAPEX); increase in paid up capital, off-loading more share, reduction in listing lead time, ensuring good corporate governance, showing government willingness, imposing conditions of listing to new MNCs, and ensuring accountability of the merchant banks will increase the depth of the share market in the country