The country's premier bourse urged the securities regulator on Thursday to help revive the moribund capital market by taking initiatives to ease investment 'obstacles' facing banks and their subsidiaries, officials said.
The Dhaka Stock Exchange (DSE) made the plea while putting forward a set of proposals at a scheduled meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC).
The other DSE proposals included proper categorisation of newly-listed companies, fixation of a fair charge for the Central Depository Bangladesh Limited (CDBL) and withdrawal of the section 53 (O) of the Income Tax Ordinance, 1984.
The DSE board attended the meeting chaired by BSEC chairman Prof. M Khairul Hossain.
After the meeting, DSE managing director Dr. Swapan Kumar Bala said mainly the banks and their subsidiaries were facing problems in the capital market.
"As per the law, the bank's exposure limit is supposed to be 25 per cent of their capital by 2016. At the same time, some investment portions will not be included in the exposure. We have informed the securities regulator and the central bank to correct the overlapping of regulations," Mr. Bala told the reporters.
According to meeting participants, the BSEC chairman told the meeting that they would sit with the concerned authority so that the current facilities being enjoyed by the investors exist in the next fiscal year also.
"Investors' participation is more important to restore normalcy in the capital market. It's urgent to solve investors' obstacles by holding discussions with different authorities," BSEC chairman Khairul told the meeting.
The DSE leaders told the meeting that the limitation concerning the pay-out settlement carried out by the CDBL should be removed.
"As per the T+2 trading cycle, the securities purchased on Sunday are supposed to mature before Tuesday's trading session. The BSEC's surveillance software shows short selling, if such securities are sold before 12 pm on Tuesday as the CDBL fails to transfer shares to BO accounts timely," said the DSE.
In this regard, the BSEC chairman said all irregularities and limitation of the CDBL would be solved within next few days by holding a tripartite meeting.
The DSE also stressed on proper categorisation of the newly-listed companies considering their performance observed before going public.
Presently, a company is listed with the bourses under the 'N' category.
The DSE is enjoying the tax holiday on its own income in a graduated rate meaning that the DSE's income will come under the tax net from the next fiscal.
"We want 100 per cent tax holiday for next five years. Similar proposals will also be placed before the revenue board," said DSE managing director Bala.
The DSE also said the section 53 (O) of the Income Tax Ordinance, 1984 should be withdrawn considering their shortage of manpower and some other complexities.
As per section 53 (O), 1984, the custodian banks, merchant banks, financial institutions or Trading Right Entitlement Certificate (TREC)-holder companies are to deduct the gains tax.
The DSE also discussed the possible reforms in securities rules so that share transaction can be executed through mobile phones from July next. DSE chairman Justice Siddiqur Rahman Miah, BSEC commissioners-Prof. Helal Uddin Nizami, Arif Khan, Amzad Hossain and A Salam Sikder were present at the meeting.
Meanwhile, the DSE top brokers expressed their concern Thursday over the continuous falling trend of the capital market at a meeting held with the DSE board.
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DSE makes its points to BSEC
FE Report | Published: May 01, 2015 00:00:00 | Updated: November 30, 2026 06:01:00
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