DHAKA, Jan 2, 2020 (BSS) – Finance Minister AHM Mustafa Kamal today said that the capital market of the country could not be able to turn around due to various rumors, vowing to make the concerned laws in this regard more compliant and ensure their full enforcement.
“Now the entire capital market is being run by rumours, due to these rumours, the capital market could not be able to turn around,” he said.
Kamal said rumours are being spread in the capital market and has also asked various agencies to identity these rumours.
The finance minister was briefing reporters after holding a meeting with the high ups of Dhaka Stock Exchange (DSE) at the Economic Relations Division (ERD) in the city’s Sher-e-Bangla Nagar area.
He said in order to facilitate the capital market for making a turn around and to stop these rumours, the existing laws would be much more compliant and would be fully enforced.
Answering to a question, he said the concerned agencies would be able to play their due roles in the market when the concerned laws would be strengthened.
“If there is any loophole in the laws, then it won’t work. I’ve asked the chairman of the BSEC to look into this matter. The concerned laws would be made cent percent compliant,” he added.
Asked about the various demands raised by the DSE, Kamal said the DSE authorities have requested me to reduce the rate of tax. “I’ve assured them of considering this demand,” he added.
Referring to the demand from the DSE to bring some good shares in the capital market, the finance minister said, “I’ve assured them, but couldn’t give a specific timeframe when it will be possible. We’ll bring the shares of those state owned enterprises first which have good fundamentals.”
Kamal also underscored the need for addressing the legal weaknesses of the Bangladesh Securities and Exchange Commission (BSEC) in a bid to bring much more compliance into the operations of the capital market regulator.
He said the government would take steps against those who are influencing the capital market through various rumours and the BSEC has been given directives in this regard.
Responding to the demand of many to devaluate Taka against US Dollars, he said that Taka would not be devaluated against Dollars and there is no such need for that.
BSEC Chairman Dr M Khairul Hossain, DSE Chairman Dr Abul Hashem, Managing Director Abdul Matin Patwari, Directors Rakibur Rahman, Shakil Rizvi and Minhaz Mannan Emon, were present, among others.
The DSE made a set of proposals before the finance minister at the meeting. These include ensuring long-term financing from the capital market, offloading shares of the state-owned enterprises to the capital market, introducing transaction of T-bond as early as possible, encouraging multinational companies to be enlisted with the capital market, resolving the dispute between grameenphone and BTRC as early as possible, reducing the corporate tax of DSE to 15 percent from 35 percent, and reducing the tax at source at .015 percent, ensuring transparency of audit reports, enhancing capacity of ICB and other concerned bodies to improve the capital market, and offloading shares of large infrastructure project companies to the capital market.