Extend tenure of Tk 200 crore stockmarket fund, BSEC urges BB
Bangladesh Securities and Exchange Commission (BSEC) has sought a five-year tenure extension of the Tk 200 crore fund that any bank can take as loan from Bangladesh Bank to invest in the capital market.
Moreover, the commission want the loan amount to be increased to Tk 300 crore.
For all latest news, follow The Daily Star's Google News channel. The BSEC made the demands for the special fund that the central bank started extending in 2020 for a five-year period in order to increase liquidity supply in the stock market.
BSEC Chairman Khondoker Rashed Maqsood placed the demand in a meeting with BB Governor Ahsan H Mansur at the central bank today, as the existing tenure of such loans will end in February 2026.
However, banks were and still are allowed to invest 25 percent of their capital in the stock market in addition to this special funds.
Banks were slow in taking loans from this special facility initially, but later many stepped in.
Some banks bought Beximco's green Sukuk Al Istisna by using the fund as the central bank allowed to invest in by issuing a circular in 2021 when people were reluctant to subscribe to the bond with their own funds.
In today's meeting, Maqsood also stressed the need for taking supportive steps by the Bangladesh Bank for the listing of good companies in the stock market.
Mohammad Rezaul Karim, spokesperson of the BSEC, said today's discussion between the two regulators was fruitful where the commission chairman also urged the central bank to make it mandatory for companies to get listed for taking term-loans of a certain amount.
Comments