Apart from IPO, the equity can also be raised through sponsors or issuing bonds, said Hafiz in his immediate reaction after the election.
The equity raising has become a much-talked-about issue since the price debacle in the stockmarkets in January-February this year.
Market experts were emphasising the need for self-financing of the merchant banks against the backdrop of gradually decreasing liquidity inflow into the market, while the merchant bankers also repeatedly urged the regulator to allow them to increase their own capital.
An 11-member executive committee under the leadership of Mohammad A Hafiz, director of AAA Consultants and Financial Advisers, has also been elected yesterday for the next two years.
Immediate past president of the body Sheikh Mortuza Ahmed handed over the responsibilities to the newly elected executive body.
Hafiz said they took the new assignment at a time when the market is passing through hard times with downward trends in share prices, trading volume and turnover as well as investors' confidence.
“Everybody should show their patience and we have to work united to stabilise the market.”
Tanjil Chowdhury, who has been elected vice-president of BMBA, said a major responsibility of merchant banks is to bring new IPOs. “We will sit with the market regulator on how to expedite the IPO process.”
After remaining inactive for 12 years, merchant bankers regrouped again in 2009, when the association held first-ever election since 1997.
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