Team Leader/Capital Market Development Expert for Project in Bangladesh
CAPMEX - The Capital Market Expert
Apply by 24 August 2011
Job applications are no longer being accepted for this opportunity.
Job Description

Capital Market Development Expert/Team Leader for Project in Bangaldesh
CAPMEX was shortlisted for a capital market development project in Bangladesh and we are currently composing the project team consisting of international and local experts.

If you are interested in the position as Team Leader/Capital Market Development Expert plese send you detailed CV to Ms. Andreea Niculae at ani@capmex.com and in cc to amg@capmex.com.

>Capital Market Development Expert and Team Leader

>Duration: 6 person-months

Anticipated start date: 10 October 2011


>Profile:
The team leader is expected to have significant recent expertise (a minimum of 15 years) in capital market development. Experience in the Asia and Pacific region is preferable. A masters degree is the minimum academic qualification.

>Tasks:
The team leader will (together with a team of app. 8 local and international experts) be responsible for preparing a comprehensive and systematic master plan for the Bangladesh capital markets which will embrace all relevant dimensions (including the equity market, bond market, derivative market [including commodity], and money market) and facilitate agreement on new initiatives to address policy, legal, regulatory, supervisory, institutional, and capacity constraints. Overall, the assignment will emphasize bond market development (both government and corporate bond markets) and improved legal and regulatory structure. In coordination with the legal and regulatory experts, risk management experts, taxation experts, institutional experts, and auditing expert, the team leader will (i) identify impediments to the development of the Bangladesh capital market, (ii) draft the strategic blueprint of the capital market development plan, and (iii) draft a sequenced implementation plan over the next 10 years with performance indicators for each measure. This will also encapsulate a detailed analysis of the recent stock market volatility in Bangladesh and recommend mitigation measures to ensure stock market stability. The team leader will also focus on the following main deliverables.

Deepen the securities market by (a) enhancing the efficiency of resource mobilization, (b) expanding the government bond, (c) developing the corporate bond market as a competitive source of financing, (d) improving liquidity and market efficiency for secondary trading of securities, (e) developing mechanisms for financing of physical infrastructure—provision of long-term capital, and (f) encouraging the creation of venture capital and private equity funds.

Assess the depth of Bangladesh capital markets, the potential of further development of securities markets (and impediments to their development), and the potential scope for national and international institutional investors (such as life insurance and pension funds).

Analyze impediments to the development of a liquid debt market.

Identify measures to resolve other barriers hindering efficient, transparent trade on the domestic debt market, including institutional capacities of financial market intermediaries, issuers, and investors.

Assess existing regulations and procedures governing the issuance and auction of government securities, related government concerns, market structure, and practice.

Examine opportunities to introduce new products that provide additional liquidity management and hedging instruments for managing risks in the domestic debt market; such products could include interest rate derivatives, forward and futures for bond instruments, etc.

Identify measures for improving the attractiveness of trading financial instruments on the secondary debt market.

Recommend a debt market strategy that will help develop a deep, liquid debt market; such a strategy should emphasize increasing the supply of high-quality corporate paper and developing effective secondary-market mechanisms to enhance liquidity.

Assist with creating a benchmark index for efficient pricing and performance measurement of the domestic debt market.

Identify measures to promote the role of credit rating agencies and the use of credit enhancement products or risk-mitigation instruments.

Consider regional experiences in developing a resilient, liquid bond market while formulating the debt market strategy.

Coordinate with the team members to improve the derivative and securitization segment of the debt market.

Offer high quality securities, including risk management, through new products: (a) developing the derivative industry—bond futures, interest rate, exchange rate derivatives, equity derivatives, etc.; (b) introducing a wide range of capital market products, including structured products-new product development and strategic linkages with other market centers in the region; and (c) introducing measures for increasing the supply of securities.

Expand investor base and improve measures for investor protection and education by (a) improving corporate governance and the governance of market institutions, (b) improving disclosure standards, (c) protecting the interest of minority shareholders, (d) improving and strengthening the investment management industry, (e) enhancing the role of institutional investors (such as government pension funds and the insurance industry) by promoting a broader scope of investment activity, and (f) improving measures for investor protection and education.

Improve regulation and coordination by (a) reviewing all existing laws related to capital market development; and identifying legal and regulatory issues that regulators must address to ensure effective oversight and enforcement capabilities, and to align the framework for regulation with current global standards or best practices to facilitate integration with global markets; (b) ensuring that the framework keeps pace with the evolution of the business environment, new products, and regional initiatives aimed at harmonization of laws and integration of capital markets; (c) recommending concrete steps that need to be taken to ensure a financial governance structure that achieves optimal coordination among regulators regarding supervision, regulation, and consumer protection in order to achieve the objectives of capital market development set forth in the master plan; (d) identifying possible opportunities for harmonization of financial regulations; achieving better exchanges of information and data among regulators; and, from a macro perspective, developing a strategy for pursuing future reforms that cut across the current governance structure; and (e) moving from a merit-based to a disclosure-based regulatory system.

Recommend measures for a tax neutral financial market. Help develop a liquid and integrated capital market with a tax system that meets the needs of different market participants and encourages savings and investments. Develop a well-defined tax implementation framework that will help determine the impact of the recommended tax reforms and introduce a level playing field across products and institutions. The overall objective is to recommend a tax-neutral financial market where the interests of the Government and market players are preserved and balanced. The scope of work includes the following: (a) reviewing all major tax-related issues in the bank and nonbank sectors; (b) identifying products/transactions/undertakings where tax arbitrage may exist; (c) interacting with stakeholders to solicit inputs; and (d) recommending possible changes that could improve tax neutrality; and considering or citing international experience and best practices on the treatment of comparable products, transactions, and undertakings.

Conduct workshops as required, involving Government agencies and other key stakeholders to present the proposed strategy on developing the domestic bond market. Subsequent to incorporating modifications to the strategy on the basis of feedback obtained in the forum, present a recommended sequenced action plan to the working group and help arrive at a consensus on a time-bound action plan to address impediments to the development of the debt market.