Stock brokers for redefining banks\\\' exposure limit

Leading stock brokers have decided to request the government to allow the banks to keep their investments in non-listed securities outside the purview of their capital market exposure limit.

They have also decided to seek extension of the existing deadline of June, 2016 for adjusting their investments in stocks with in 25 per cent exposure limit until 2020.

The representatives of the brokerage firms sat on Wednesday and finalised the proposals including those to be placed before the government, participants of the meeting said.

The proposals are aimed at bringing back normalcy in the country's moribund capital market.

Earlier on Tuesday, the brokers submitted similar proposals to the Bangladesh Securities and Exchange Commission (BSEC) at a meeting with the latter

A representative of a leading brokerage firm who attended Tuesday's meeting said, "The Bangladesh Bank (BB) should extend the timeframe for adjusting the share market investment of banks with the exposure limit up to 2020 from the existing deadline of June, 2016."

The representatives of Dhaka Bank Securities, EBL Securities, International Leasing, MTB Securities and Bank Asia Securities, among others, attended Wednesday's meeting.

According to their proposal, the long-term investments in non-listed shares should be kept outside the purview of the limit of banks' exposure to the stock market.

According to another proposal, banks' equity investment made in subsidiary companies should also not be brought under the exposure limit.

"We have submitted our proposals to the regulatory body so that it takes initiatives for implementing our demands for reviving the capital market," said a chief operating officer of a leading brokerage firm.

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