Also the shares of cent percent government-owned profitable companies should be offloaded for public participation through the bourses, he said.

"Framing policies needs to be driven by the fact that foreign direct investment (FDI) along with these thrust sectors could substantially boost the capital market," said CSE President MKM Mohiuddin addressing a post-budget press conference in the port city.

Mohiuddin lamented that the proposed budget virtually contained nothing regarding the capital market.

Chittagong Stock Exchange chief also placed an 11-point demand for the benefit of the capital market as well as betterment of the economy.

The demands include tax rebate for listed companies besides rebate on individual dividend income and bond rate and investment allowance for income tax assessment.

Recalling consecutive deficiency in the earlier budgets, Mohiuddin said deficit budget might destabilise the capital market in many ways.

He said a Tk171 billion deficit is very likely to force the government to rely on internal borrowing from the money market, despite Tk120 billion has been planned to be externally financed.

The growing dependence on bank borrowing to meet deficit financing, coupled with the existing contractionary monetary policy, will shrink the funds for the private sector, he said, making an observation that the liquidity crunch has already led to an unhealthy competition among the private commercial banks to attract depositors by raising deposit rates up to 13 percent.

"Instead of high reliance on the banking sector, the government should collect money by using marketable bonds and offloading government shares in the capital market," the chief of the second bourse in the port city proposed.