DHAKA, June 11, 2020 (BSS) – Finance Minister AHM Mustafa Kamal today said the government has taken six short and long-term measures to rejuvenate the stock market and bring dynamism into the sector.
“These include- enhancing participation of banks and non-bank financial institutions in the capital market, ensuring easy credit facility for merchant bankers and institutional investors, boosting investment capacity of state-owned Investment Corporation of Bangladesh, taking steps to bring confidence in the stock market, taking steps to increase institutional investment and listing multinational companies and state-owned enterprises to enhance quality of IPOs in the stock market,” he said
The finance minister said this while placing the proposed national budget for the fiscal 2020-21 in the parliament.
Kamal said it is noteworthy that four state-owned banks, namely Sonali, Janata, Agrani and Rupali, have already decided to increase their investment in the capital market.
“Further, to maintain liquidity in the capital market by increasing investment from private banks, Bangladesh Bank now allows scheduled banks to invest Taka 200 crore in the stock market taking financial support from the central bank,” he added.
He said banks will be allowed to show the fund as special investment, which will not fall within the purview of the banks’ stock market exposure of up to 25 per cent of their capital.
Mustafa Kamal informed that some tax incentives have been offered in the current fiscal year to encourage the capital market.
“For example, dividend income from the listed companies was made tax-free up to Taka 50,000, and double taxation on dividend from listed companies was removed. Declaration of cash dividend for at least 50 percent of the profit of listed companies has been made mandatory,” he added.