FY27 budget measures to boost capital market: DSE

The Dhaka Stock Exchange (DSE) has welcomed a series of initiatives proposed in the national budget for fiscal year 2026-27, saying the measures would help develop the country's capital market and create a more investment-friendly environment.
Finance Minister Amir Khosru Mahmud Chowdhury on Thursday proposed several measures considered broadly positive for the capital market, including tax reliefs, market reforms and sector-specific incentives aimed at improving corporate profitability, strengthening cash flows and encouraging investment.
In a statement on Thursday, DSE Chairman Mominul Islam expressed gratitude to the finance minister for incorporating a number of capital market-friendly policies in his first budget after the BNP government assumed office.
He said the government's emphasis on restoring investor confidence, strengthening market governance and addressing long-standing concerns of market stakeholders reflects a strong commitment to the sustainable development of the capital market.
Mr Islam noted that the proposed measures to improve coordination among regulatory agencies and institutions linked to the capital market would enhance efficiency, transparency and accountability, helping build a stronger and more integrated market infrastructure.
He also praised recent government reform initiatives, including the appointment of a special assistant for capital market affairs and the finance minister's repeated emphasis on the sector.
"These developments have generated renewed optimism among investors and market participants," he said, adding that the government's proactive approach to capital market reforms has raised expectations for a more stable, transparent and vibrant market.
Among the key proposals in the budget is a provision allowing foreign investors to repatriate profits and transfer proceeds from shares purchased through Non-Resident Investors' Taka Accounts (NITA) within one working day.
Welcoming the move, Mr Islam said simplified NITA operations would encourage greater foreign investor participation and help deepen the market.
One of the most significant tax administration reforms proposed in the budget is the conversion of tax deducted at source (TDS) from a minimum tax settlement mechanism into an advanced tax system, he said.
The measure would provide substantial relief to brokerage houses and other businesses that have long faced liquidity pressures due to non-refundable source tax deductions, he added.
The budget further outlines a plan to modernise market infrastructure through a gradual transition from the existing T+2 settlement cycle to T+0 settlements.
According to the DSE chairman, this initiative will ensure faster, safer and more efficient trade settlement in line with international standards, while improving market liquidity and operational efficiency.
Mr Islam expressed confidence that continued policy support, regulatory reforms and government attention would help transform Bangladesh's capital market into a more dynamic, deeper and investor-friendly platform.
"Stronger investor confidence, improved governance and the adoption of innovative technologies would play a key role in ensuring the market's long-term sustainable growth and development," the DSE chairman added.

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