The Bangladesh Securities and Alternate Commission (BSEC) has requested the Bangladesh Bank to delay the tenure of the industrial banks’ special Tk200 crore capital market investment fund for some other five years except February 2030.
Additionally, the BSEC has requested to design higher the fund size to Tk300 crore for every scheduled bank.
BSEC Chairman Khondoker Rashed Maqsood made the requests at some level of a gathering with the central bank Governor Dr Ahsan H Mansur this (27 November) afternoon.
At some stage in the early 2020 stock market downturn, the BB on 10 February that year allowed every bank to ranking a Tk200 crore special fund out of their indulge in funds or borrow from the central bank at a concessional price of 5% for five years, with the tenure put aside to entire in February 2025.
Per BSEC, higher than 20 banks had over Tk1,600 crore capital market investments under the special plan by mid 2024.
To design the offer profitable, the central bank additionally excluded the investment from the banks’ capital market publicity calculation.
After this day’s assembly, BSEC officers informed TBS that the BB governor used to be “cordial and obvious” to the BSEC proposals.
The BSEC chairman additionally sought BB pork up in capital market pattern.
For itemizing fundamentally trusty corporations, BSEC suggested the central bank to recount the corporations attempting to gain long stoop loans to the capital market so that they would possibly be able to elevate equity capital from the stock market and some debt capital from the company bond market as an different of overburdening the banks.
For a stronger collaboration and coordination between the regulators of the money market and the capital market, BSEC additionally requested a current IT ecosystem that would let capital market intermediaries document to BB on-line.
BSEC, eying a sturdy current on-line surveillance gadget in the capital market, additionally requested the BB to include capital market infrastructure modernisation in the World Bank-financed pattern agenda, per the BSEC officers.
