The capital market in Bangladesh needs better regulation to attract investors and support economic development. Banks and financial institutions are struggling to provide long-term funds, so the capital market is crucial for industrialization and privatization. However, the current state of the market is not conducive to this role. Regulators like the Securities and Exchange Commission and Stock Exchanges need to make structural changes to boost investor confidence and improve market functions. The government has also allowed merchant banks to support the growth of the capital market.