BB aims to expand capital market by over 10pc by FY29

Bangladesh Bank has announced an ambitious roadmap to expand the nation's capital market by 10.75 per cent by FY29.

The announcement came during a high-profile meeting between the Bangladesh Bank governor and a delegation from the Chittagong Stock Exchange (CSE), led by Chairman AKM Habibur Rahman, at the central bank's headquarters in the capital, according to a press release.

The plan will require a critical macroeconomic shift, reducing the private sector's heavy reliance on commercial bank loans by aggressively developing a deep, liquid, and globally integrated capital market.

Standing on a solid foundation of Tk 6.98 trillion in current market capitalisation, the central bank aims to drive an incremental expansion by adding Tk 750 billion over the next three fiscal years.

The growth trajectory has been mapped out in clear, phased milestones, beginning with an initial target of Tk 200 billion in FY27, followed by Tk 250 billion in FY28, and a final boost of Tk 300 billion in FY29.

To ensure this expansion is fueled by both local and international capital, Bangladesh Bank highlighted a breakthrough policy change removing chronic friction for foreign portfolio investors who historically faced significant turnaround delays due to bureaucratic paperwork.

Under the newly amended rules, proceeds from the sale of shares and securities will now be credited directly into foreign investors' NITA (Non-Resident Investor's Taka Account). Authorized dealer banks will handle tax compliance internally, automatically deducting and withholding any applicable capital gains tax before depositing it straight into the government treasury.

This reform effectively aligns trading in foreign portfolio investments with the standard local settlement cycle, drastically reducing compliance costs and removing a primary barrier that has historically held back the market's global rating.

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