The financial system of Bangladesh is relatively under developed, and the majority of the market rely on money market compared to the capital market. Besides, the structure of the financial system of Bangladesh is very complex, and sometimes difficult to correlate with the standard one. The lack of regulation, corruption, bureaucracy, and political unsuitability is the main hinder for the actual growth of this sector. However, since independence its progress has emerged as exemplar for the world by reducing poverty and increasing the purchasing power of the people. Based on the study, the development of the capital market of a country is the prime indicator for the long-term sustainability. Reshaping the regulatory structure, reviewing and introducing new policies, enforcing more institutional control, introducing diversified products, and providing better services could help this sector to grow far better.