The Dhaka Stock Exchange PLC (DSE) has described the proposed budget for the fiscal year 2025-26 as ‘friendly to the stock market’. The organization’s Chairman, Mominul Islam, is of the opinion that various proposals within the budget will positively influence the nation’s stock market and foster an investment-friendly atmosphere. On Monday (June 2), Financial Advisor Dr. Salehuddin Ahmed unveiled the budget proposal via television.

In a press release following the budget announcement, the DSE stated that numerous proposals concerning tax structure and investment incentives will significantly contribute to the market’s development. These proposals include:

Increasing the tax disparity between listed and unlisted companies: This measure aims to motivate new companies to become listed.

Lowering the tax rate for merchant banks: This initiative is expected to enhance their operations and promote greater investment in research.

Reducing the tax at source on transactions (from 0.05% to 0.03%): This adjustment will provide relief to brokerage firms and facilitate an increase in transactions.

The DSE also noted that some recent actions taken by the Bangladesh Securities and Exchange Commission (BSEC) are part of these market-friendly efforts. These actions include the decision to cut the BO account maintenance fee from Tk 450 to Tk 150 and to allocate 25% of the interest on CC accounts to the Investors Protection Fund, which will help safeguard the interests of affected investors.

Furthermore, the DSE highlighted the provision allowing individual investors to keep capital gains from listed companies up to Tk 50 lakh tax-free, along with the decision to lower the tax rate on income exceeding this amount to 15 percent as favorable.

The plan to list government-owned multinational and profitable companies on the stock market in the proposed budget, along with the suggestion to motivate large private sector firms to go public, will enhance the market’s depth and stability, according to the DSE Chairman.

He stated that this budget and the recent policy measures demonstrate the government’s firm dedication to advancing the stock market. The DSE is focused on creating a sustainable stock market by leveraging future-oriented technology and expertise.