A sum of over Tk 4.44 billion has been disbursed under a bailout package against the portfolios of 18,658 of the investors affected during December 2010-January 2011 stock-market debacle, officials said.
According to information found in the securities' regulator and the Investment Corporation of Bangladesh (ICB), 27 merchant banks and brokerage firms availed the recompensing facility from the refinancing scheme.
"The loan-sanctioning committee of the scheme has issued sanction letters to 44 merchant banks and brokerage firms who sought the funds worth Tk 5.26 billion for 21,067 affected investors," said an official of Bangladesh Securities and Exchange Commission (BSEC).
Out of the amount of Tk 5.26 billion, Tk 4.44 billion has already been disbursed, as of March 19, 2015, he added.
Finance Minister AMA Muhith approved a fund worth Tk 9.0 billion on June 18, 2013 to give the kiss of life to the moribund capital market.
The fund was approved by the government as part of implementing the stock-market rejuvenation package announced by the regulator on November 22, 2011.
The ICB received Tk 6.0 billion from Bangladesh Bank (BB) through two equal installments under the capital-market refinancing scheme.
The BSEC officials said four firms had also completed documentation to receive Tk 270 million under the refinancing scheme while 10 other firms accepted sanction letter to receive Tk 469 million.
ICB managing director Md. Fayekuzzaman expressed his optimism about completing the disbursement of full funds soon.
"I hope the disbursement of the remaining funds worth Tk 1.27 billion will be completed within next ten to fifteen days as many fresh affected investors showed interest in availing the facility," Mr Fayekuzzaman said.
Among the 27 merchant banks and brokerage firms, ICB Capital Management received Tk 844.8 million, ICB Tk 566.7 million, Janata Capital and Investment Tk 407.8 million, IIDFC Securities Tk 201.5 million, Fareast Stocks and Bonds Tk 187.0 million, International Leasing Tk 159.9 million, NCCB Securities and Financial Services Tk 114.4 million, BLI Capital Tk 116.1 million and LankaBangla Investments Tk 109.0 million.
ICB Capital Management has also received Tk 741.8 million in the second phase.
Asked why only 27 merchant banks and brokerage firms availed the facility under the refinancing scheme, the ICB managing director said earlier many investors were reluctant to avail the facility.
"Many merchant banks and brokerage firms were also unable to apply for fund as their clients, whose investments were above Tk 1.0 million, were out of the criteria set for availing the capital-market refinancing scheme," he said.
Due to less-than expected level of investors' response and tough conditionality, the securities regulator earlier extended the timeframe for fourth time to apply for re-financing facility.
BSEC executive director Mohammad Saifur Rahman said there is no example in other countries of helping out affected investors the way Bangladesh is doing.
"But the country's government gave funds to reduce the sufferings of affected investors. Investors who have availed the facility have become benefited. I think those who are yet to apply for the facility should come forward soon," Mr Rahman told the FE.
As per latest deadline, affected investors can apply for refinancing facility till June 30, 2015.
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