B Mirror Desk : Bangladesh Bank has extended the validity of the special fund for investment in the capital market until December 31, 2026. The validity of this fund expired last February. Bangladesh Bank said that the validity of the special fund has been extended in the interest of improving the situation in the capital market and overall stability of the financial sector.

On Tuesday (April 8), the Department of Off-Site Supervision of Bangladesh Bank issued a circular in this regard.

The circular states that scheduled banks are to form a special fund of Tk 200 crore for investment in the capital market and provide policies to be followed regarding investment from this fund. The validity of this fund is fixed until February 2025. However, according to a circular in 2021, the investment period in green sukuk bonds issued by special purpose vehicles for investment in the renewable energy sector by private entrepreneurs under this fund was fixed until December 31, 2028.

In such a situation, in the context of the unstable situation prevailing in the country’s capital market, in the opinion of various stakeholders and investment banks related to the capital market and in the interest of the overall stability of the financial sector, Bangladesh Bank has decided to extend the period of the special fund until December 31, 2026, subject to the following conditions, in order to improve the situation and ensure the overall stability of the financial sector.