What role do merchant banks play in getting companies listed on the capital market? Merchant banks play a vital role in bringing good companies to the [capital] market, thus, increasing market depth and liquidity. Therefore, these institutions have to find good companies that can provide fair and sustainable returns to shareholders. Few small merchant banks in the market are bringing IPOs without due diligence, which is making the market volatile, while reputed merchant banks, like LankaBangla Investments Ltd, are working hard to continue bringing good companies to the market. It is necessary to create a culture that promotes pulling good companies to become listed, rather than pushing merchant banks to list companies.

Source: Dhaka Tribune January 31, 2019 16:52 UTC