BSEC urges insurers to come up with fresh investments

The securities regulator has urged the insurers to come up with fresh investments, in order to strengthen the liquidity flow in the ailing stock market.

Bangladesh Securities and Exchange Commission (BSEC) made the request at a meeting at the BSEC office on Wednesday.

"The representatives of the insurance companies have assured the BSEC of their support to be visible in the market," said BSEC spokesperson Mohammad Rezaul Karim.

The meeting came in the backdrop of the persistent corrections recently observed in the capital market.

Earlier, the securities regulator exempted 26 insurance companies from the compliance of having a minimum paid-up capital worth Tk 300 million in case of going public.

In that case, the companies will have to invest at least 20 per cent of their equities in the securities market.

Of 26 companies, seven have already gone public.

"The insurance companies that went public taking exemption have ensured their stipulated investments in the market," said the spokesperson.

The BSEC urged the remaining companies to go public soon, submitting IPO (initial public offering) proposals, he said.

The risk of investments was also discussed at Wednesday's meeting and the securities regulator suggested that the insurers make investments in the companies having good fundamentals.

"The BSEC has also urged the insurers to make long-term investments in the capital market," added Mr Karim.

The BSEC commissioner Dr Shaikh Shamsuddin Ahmed chaired the meeting.

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