'Clearing Corporation' for stock transactions soon: Muhith

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M Fariduddin

FE Report
The Securities and Exchange Commission (SEC) has enhanced its surveillance and monitoring to check manipulation in the stock market, Finance Minister Abul Maal Abdul Muhith told Parliament during the question-answer session Sunday.
"At the same time after conducting proper investigation of alleged manipulation, the SEC punishes the traders if found guilty of wrongdoing," he said in response to a question of Awami League lawmaker ABM Golam Mostafa.
The minister said the government has taken steps to set up a 'clearing corporation' immediately for speedy and smooth transaction in the stock market.
The clearing corporation is a separate entity which would ensure smooth transaction in the stock market and payment for derivative instruments.
"We are also planning to modernise traditional stock exchanges by demutualising them," the minister said.
The minister said contribution of stock market to GDP has increased, and institutional and retail investment and daily transaction have also recorded significant rise.
"The government has taken a number of steps for the development of the market, including supply of good securities, human resource development, appointment of experienced asset managers and credit rating company," he said.
Mr Muhith said it is possible to achieve eight per cent GDP growth but the pre-requisite for it is to increase investment from the current level of 24 per cent to 32 per cent.
"Annual development programme expenditure will be increased to 6.1 per cent in 2013-14 from 4.1 per cent of the GDP in the current fiscal and revenue growth by 0.5 per cent every year to achieve the growth target," he said.
The minister said in the last one and half years a total of 86,069 registered retail and wholesale institutions paid Tk 2.03 billion in VAT.
The government has no plan to issue any new licence for non-bank financial institution and the existing 29 NBFIs have 95 branches across the country, the minister said.
Tax-net will be expanded to bring new 0.5 million taxpayers and survey will be conducted through outsourcing to identify new taxpayers in the current fiscal, he said.
The country has 2.52 million TIN-holder taxpayers and NBR has taken steps for the automation of income tax department to bring transparency and dynamism, he added.
Ship-breakers in the last 10 years paid Tk 2.03 billion VAT to the public exchequer, the minister said in reply to another question.
Telecom Minister Rajiuddin Ahmed Raju, in response to a question of AL lawmaker Golam Dastagir Gazi, said the government has no plan to issue new licence to any new mobile operator.
Bangladesh Telecom Regulatory Commission earned Tk 6.07 billion from the mobile operators in the last fiscal and National Board of Revenue also collected tax and VAT from them, he said.