Dhaka Stock Exchange (DSE) Chairman Mominul Islam said, for the sake of the capital market, we are trying to eliminate the relevant problems including reduction of capital gain tax, dividend tax, turnover tax.
He said this in a meeting with the board of directors of DSE along with representatives of top merchant banks and asset management companies.
DSE Chairman said, a rare opportunity has been created to make the capital market efficient, transparent and beneficial for the economy. This requires long-term structural changes, investigation and prosecution of irregularities and corruption, as well as joint efforts of all market stakeholders to gain the confidence of investors and intermediaries. That is why DSE is doing some work on short term basis. Where the main challenge is to restore confidence in the stock market. It has several steps. One is to increase policy support, for which we are trying to remove relevant issues including reduction of capital gain tax, dividend tax, turnover tax in the interest of the stock market by communicating with NBR. Another is liquidity support. For this reason, initiatives will be taken to bring back our domestic sources as well as foreign investors He said, like the banking sector, the government’s cooperation is very necessary for the stock market. If the market intermediaries can approach the relevant authorities together as a platform, it will be easier for us to get policy benefits. Travel and tourism
Muminul Islam said, initiatives are being taken to increase the institutional capacity of DSE. Market players should be allowed to play. If they do any irregularities, the regulator will catch them. We will take all of you with us to the concerned authorities to make all the necessary reforms in our market.
He also said that we will work on changing the necessary rules and regulations including increasing research-based communication with the stakeholders related to the capital market. Good governance is crucial for market development. If DSEs, merchant banks, asset management companies and DBAs work together, the way forward will be smooth.
Chairman of DSE said that Bangladesh’s capital market is on a very weak basis today due to long-term irregularities, corruption, lack of justice, policy distortions and wrong decisions. All the market intermediaries including regulatory bodies, stock exchanges are working together for structural reforms and removal of irregularities in the present market. But in the medium term, no reforms will be effective if investors are unable to maintain confidence. We also need to work together on what we can do to boost market confidence in the short term.
In the meeting, the representatives of merchant banks and asset management companies discussed confidence in the market, coordination between various regulatory agencies, increasing exposure to the stock market by the parent bank for subsidiary institutions of the bank to solve the liquidity crisis, reforming direct listing rules, withdrawal of double taxation, creation of support fund, capital gains tax. Withdrawal, incentives for issuer companies, ensuring institutional capacity and accountability of DSE, not taking rash decisions like floor prices, ensuring transparency in financial reports, technology development, ensuring quality IPOs, increasing IPO quota for mutual funds, reforming public issue rules, listing Later, he discussed various issues including strengthening monitoring of companies, reforming margin rules, reforming mutual fund rules, strengthening research, institutional governance, abolition of additional supervision, removal of policy obstacles, dynamism of ATB market.
Director Major General (retd) Mehmed Kamruzzaman, Nahid Hossain, Ph.D., Syed Hammadul Karim, Mohammad Ishaq Mia, Shahnaz Sultana, Md Shakeel Rizvi, Sharif Anwar Hossain, Richard Ri Rosario and Managing Director (Acting) Satvik Ahmed were present in the meeting on behalf of DSE. Shah. Also present were President of Bangladesh Merchant Bankers Associations (BMBA) and Chief Executive Officer of ICB Capital Management Limited Majeda Khatun, First Vice President of BMB Md Riyad Matin, Second Vice President Mohammad Obaidur Rahman, FCS, Vice Chairman of Shanta Asset Management Company and BSEC. Former Commissioner Arif Khan, Director and Managing Director and Chief Executive Officer of Vanguard Asset Management Limited Waqar Ahmed Chowdhury and many others were present.
