Bangladesh Merchant Bankers Association (BMBA) President Mohammad A Hafiz pitched hope on the 2013-14 budget for reviving the markets.
In an interview to bdnews24.com ahead of the budget, Hafiz said: “We have high hopes from the upcoming budget. We hope there will be something for the capital markets.”
He said the budget must focus on addressing the liquidity crisis that faces the market and solving it.
“Our recommendations (for the budget) have already been made to the Bangladesh Securities and Exchange Commission.”
The suggestions include tax exemption on dividends obtained by individual investors, lowering tax rate on merchant banks by 10.5 percent and setting it at maximum 27 percent and allowing black money to be invested only through merchants banks or mutual funds in the capital market.
BMBA has pushed for a special a Tk 50 billion fund for the capital market.
After its peak in 2010, the stock market slumped in December that year.
Experts say the market has not yet been able to recover from it despite measures taken by the government and market regulators.
Despite such efforts, the key index at the capital market plummeted almost 60 percent in May to sink to 3,600 points.
Recently, Bangladesh Bank announced of a TK 9 billion re-financing fund for merchant banks and brokerage houses.
BMBA chief Hafiz feels investors trust the market no more. “This can change only by increasing liquidity in the market.”
“There are no alternatives to the capital market for hastening the country's economic growth. All countries look to the markets for capital formation. We cannot ignore the stock market.”
Source: Bd news24
