Chairman of Dhaka Stock Exchange (DSE) Mominul Islam said that DSE will take steps to find a fair solution through discussions with the relevant authorities to bring back the tax exemption on capital gains for ordinary investors. At the same time, consideration of deduction of tax at source on dividends as final tax and adjustment of capital loss will be discussed on an urgent basis, he said.
He said this in a discussion meeting organized with representatives of top 30 brokerage houses on Monday (October 21).
The DSE chairman said that the capital market today stands on a weak foundation as a result of many wrong decisions, irregularities and inefficiencies in the past. To get out of this situation, everyone involved in the market has to work together. This is a rare opportunity for us to make the capital market efficient, transparent and beneficial to the economy. This requires long-term structural changes, investigations and prosecutions of irregularities and corruption, as well as work to gain the confidence of investors and intermediaries.
Mominul Islam said that the DSE will take steps to find a fair solution through discussions with the relevant authorities on an urgent basis regarding restoration of tax exemption on capital gains tax for private investors, consideration of tax deduction at source on dividends as final tax and adjustment of capital loss. Besides, DSE has already discussed with the concerned authorities regarding CC account interest and cash disbursement and both issues are expected to be resolved soon.
Stating that the process of developing DSE to work with full capacity is underway, he said, DSE will provide leadership in creating an integrated platform for all market stakeholders, so that market stakeholders can solve their problems in most cases by themselves or jointly with the regulator or the government. Can take efforts to resolve through negotiation.
He also said that the macro economy has started to turn around. Investors’ confidence will soon return to the capital market through the collective efforts of all. That is why he requested the investors to be patient without panicking.
In the meeting, the representatives of top brokerage houses discussed the current market situation and restoring investors’ confidence in the capital market, liquidity crisis, capital gains tax, market makers, categories, policy support, facilitating cash withdrawals, financial reporting system, to put the market on a solid footing in the future. Discusses non-pricing, foreign investment attraction, reform of IPO system, margin loan reform, interest on CC account, CCBL, no bad IPO, loan ratio, review of demutualization scheme and Capital Market Stabilization Fund.
DBA President Saiful Islam said in the event, increasing the confidence of investors is a very important issue. There is a lack of confidence in the current market. Confidence should be increased in capital market development. He also called for taking necessary initiatives to bring advance income tax admissibility and capital gains tax at individual level.
He said that CCBL was formed in 2018 but could not start operations till now. You (DSE) have to take action in this regard. And the CMSF institute formed the BSEC. Therefore, if any decision is to be taken about this institution, the commission has to take it.
He also said that demutualization act and scheme should be reviewed. The Board of Directors of DSE should play a role in making timely corrections here. The advance income tax that is collected from the brokerage house in the capital market. As a result of this, in many cases the brokerage houses are suffering, work must also be done on that matter.
DSE Director Prof Major General (retd) Mohammad Kamruzzaman, Syed Hamdul Karim, Mohammad Ishaq Mia, Shahnaz Sultana, Md Shakeel Rizvi, Richard De Rosario and DSE Managing Director (Acting) Satvik Ahmed Shah were present.
