Listed cos should issue bonus dividends only for BMRE, says Planning Minister

The Planning Minister AHM Mustafa Kamal has said the listed companies should issue bonus dividends only for their expansion purpose, officials said.
The minister said this Wednesday at a meeting held with the board of directors of Dhaka Stock Exchange (DSE).
The board of the demutualised premier bourse made the courtesy call under the leadership of the DSE Chairman Justice Siddiqur Rahman Miah.
"The planning minister said the cash dividends should be focused more than the bonus dividends,"  the DSE Managing Director Dr. Swapan Kumar Bala who also attended the meeting held with the planning minister told FE.
He said, the minister observed that a company eventually fails to issue dividends if it issues huge amount of bonus at initial stage.
"That's why the minister said that the listed companies should issue cash dividends. And the bonus dividends should be issued only for balancing, modernisation, rehabilitation and expansion (BMRE) pupose," Bala said.
According to DSE managing director, the planning minister Mr. Kamal has asked the premier bourse authority to work for increasing daily turnover of the capital market.
"The DSE sought the minister's intervention in ensuring the tax exemption facility, which will not be fully applicable for the exchange from next fiscal year, for the premier bourse. In this connection, the minister suggested the submission of a research based proposal so that the government can also be benefited by providing tax exemption facility," Mr. Bala said.