Allow investment of undisclosed money in stock market: Bourses
Wednesday, 1 April 2009
FE Report
The country's bourses have urged the government to allow investment of undisclosed money in the stock market to spur its growth.
"We, the two bourses, have set common proposals for inclusion in next budget to strengthen the stock market," Rakibur Rahman, DSE president, told reporters after a meeting of the two stock exchanges on the current market situation and upcoming national budget at its auditorium Tuesday.
Directors of the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) were present at the meeting.
"Unless given the chance to legalise undisclosed money by way of investment in the market, such money will not flow into real economy," he said adding that rather it would be used in illegal ways.
CSE president Nasiruddin Ahmed Chowdhury said: "The market will be stronger and vibrant if our proposals are reflected in the coming budget."
The DSE and CSE also urged the securities regulator to set the definition of price sensitive information, apply 2CC article for quick settlement of stock market related cases, empower the bourses in opening the branch offices of the brokerage houses, relax lock-in period for the private placement.
Companies having paid-up capital below Tk 300 million and mutual funds below Tk 1.0 billion should be discouraged for listing on the bourses, the meeting proposed.
The DSE and CSE have also formed a 10-memebr committee to resolve various issues relating to the stock market. The committee will sit once in a month.
The DSE and CSE in their budgetary proposals also demanded withdrawal of double taxation policy and increase tax-free investment ceiling from the existing Tk 0.5 million to Tk 1.0 million.
Currently, the listed companies cut 10 per cent in advance from dividends given to its shareholders and deposit the sum to the government exchequer as tax.
On the other hand, the shareholders pay tax again when their incomes cross the limit of tax-free investment.
"This system is unjust and irrational, and a damper to the growth of the stock market. So, we want an end to it," Rakibur said adding the double taxation policy also discourages the investors to invest in the market.
The country's bourses have urged the government to allow investment of undisclosed money in the stock market to spur its growth.
"We, the two bourses, have set common proposals for inclusion in next budget to strengthen the stock market," Rakibur Rahman, DSE president, told reporters after a meeting of the two stock exchanges on the current market situation and upcoming national budget at its auditorium Tuesday.
Directors of the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) were present at the meeting.
"Unless given the chance to legalise undisclosed money by way of investment in the market, such money will not flow into real economy," he said adding that rather it would be used in illegal ways.
CSE president Nasiruddin Ahmed Chowdhury said: "The market will be stronger and vibrant if our proposals are reflected in the coming budget."
The DSE and CSE also urged the securities regulator to set the definition of price sensitive information, apply 2CC article for quick settlement of stock market related cases, empower the bourses in opening the branch offices of the brokerage houses, relax lock-in period for the private placement.
Companies having paid-up capital below Tk 300 million and mutual funds below Tk 1.0 billion should be discouraged for listing on the bourses, the meeting proposed.
The DSE and CSE have also formed a 10-memebr committee to resolve various issues relating to the stock market. The committee will sit once in a month.
The DSE and CSE in their budgetary proposals also demanded withdrawal of double taxation policy and increase tax-free investment ceiling from the existing Tk 0.5 million to Tk 1.0 million.
Currently, the listed companies cut 10 per cent in advance from dividends given to its shareholders and deposit the sum to the government exchequer as tax.
On the other hand, the shareholders pay tax again when their incomes cross the limit of tax-free investment.
"This system is unjust and irrational, and a damper to the growth of the stock market. So, we want an end to it," Rakibur said adding the double taxation policy also discourages the investors to invest in the market.