The Chairman of the parliamentary committee on the Ministry of Finance has said another meeting between the stakeholders and the Prime Minister might be held to fully implement the incentive package to stimulate the stock market.
“Some parts of the incentive package have been implemented, but some have not. If necessary, the Prime Minister will have to be reached for its full implementation after making a checklist of the portions yet to be implemented,” AHM Mustafa Kamal said after a meeting of the committee on Thursday.
Prime Minister Sheikh Hasina had a meeting with the capital market stakeholders in November last year after the price indices kept tumbling for months.
The meeting had asked the regulatory body, Securities and Exchange Commission (SEC), to announce an incentive package to stabilise the market.
A week later, SEC announced the stimulus package with a host of incentives for the institutional and foreign investors. It also offered interest waiver on margin loans to small investors up to a certain level and a quota in IPO.
But incentives are yet to prop up the market. Last week, the indices ebbed to their lowest in the last three years.
Thursday’s meeting was attended by the Finance Minister, Bangladesh Bank Governor, Secretary of the Division of Banking and Financial Institutions, SEC Chairman, DSE and CSE Presidents and Investment Corporation of Bangladesh and National Board of Revenue officials.
The parliamentary committee in a media release said: “The meeting recommended identifying the problems (in the capital market) and possible initiatives for their solution to put the market on a solid base.”
It said the meeting decided to meet with the Finance Minister and cental bank chief.
Mustafa Kamal said a law would be passed in the next session of Parliament for demutualisation of stock exchanges.
The law, aiming to separate the bourse management from their ownership, was placed in Parliament following the Cabinet nod. Now the proposed law is with the parliamentary committee for review.
“Some changes will be brought to it before it is passed in the next session of Parliament,” said the Chairman.
On the possible changes, he said the law authorises the regulatory body to revoke the licence of a member of the stock exchange for violation of the statute. But the new law provides for slapping fine instead of cancelling licence.
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