Finance ministry sits with different banks to find ways to boost investment in stock market
Several banks have urged the government to relax the conditions attached to the special fund introduced by Bangladesh Bank in 2020 to support the capital market.
The appeal was made at a meeting on Monday, where the finance ministry sat with top officials of different banks to explore ways to boost investment in the stock market.
For all latest news, follow The Daily Star’s Google News channel. Many banks have yet to fully utilise the fund, prompting the call for easing regulations, the banks said.
Under the current rules, banks are restricted from purchasing more than 10 percent of the units of a closed-end mutual fund and 15 percent of those of an open-ended mutual fund.
In addition, eligible mutual funds must have disbursed at least 5 percent cash dividends in each of the past three consecutive years to qualify for receiving new investment.
Bankers requested revisions to these requirements, citing multiple reasons, according to a senior official of the Bangladesh Securities and Exchange Commission (BSEC) present at the meeting.
While the central bank has already extended the tenure of the fund facility to December 31, 2026, bank representatives sought a further extension.
The meeting was attended by Anisuzzaman Chowdhury, special assistant to the chief adviser and chairman of the Capital Market Development Committee; Najma Mubarak, secretary of the Financial Institutions Division; Khondoker Rashed Maqsood, chairman of the BSEC; and Nurun Nahar, deputy governor of Bangladesh Bank, along with others.
Representatives from different banks, including BRAC Bank, Eastern, Pubali, Mutual Trust, Uttara, Dutch-Bangla, and Trust, were also present at the meeting.