Dhaka Stock Exchange (DSE) Chairman Mominul Islam said that the stock market is in a weak position today 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.
On Monday (October 21), the Board of Directors of Dhaka Stock Exchange (DSE) discussed the ongoing market situation with the top 30 brokerage houses and DSE Brokers Association of Bangladesh (DBA) representatives.
Deputy General Manager of Publication and Public Relations Department of DSE. This information was informed in a press release signed by Shafiqur Rahman.
DSE Director Professor Major General (Retd.) Mohammad Kamruzzaman, Syed Hamdul Karim, Mohammad Ishaq Mia, Shahnaz Sultana, Md. Shakeel Rizvi, Richard De Rosario, DBA President Saiful Islam and DSE Managing Director (Acting) Satvik Ahmed Shah.
Chairman of DSE said, this is a rare opportunity for us to make the capital market efficient, transparent and beneficial to the economy. This will require long-term structural changes, investigation and prosecution of irregularities and corruption, as well as work to gain the confidence of investors and intermediaries.
Mominul Islam said, brokerage houses have a lot of responsibility to build a dynamic capital market. In the current situation, the capital market of the country is passing through an unusual period. Your cooperation and advice is essential on how to transition from this situation to the market.
He assured the representatives of DBAs and brokerage houses that the DSE will take steps for a sound solution through discussions with the concerned authorities on an urgent basis regarding restoration of tax exemption on capital gains tax for private investors, consideration of incentive deduction on dividends as final tax and adjustment of capital losses. DSE has already discussed with the concerned authorities regarding interest and cash disbursement of CC account and both issues are expected to be resolved soon.
He expressed the hope that investors’ confidence in the capital market will soon be restored through the collective efforts of all. That’s why he said investors should not panic and be patient. Macroeconomics is beginning to turn around. So, its positive impact will be seen soon in the capital market as well.
DBA President Saifur Islam said, 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. Apart from this, he called for necessary initiatives to bring advance income tax (AIT) admissibility phase and abolish Capital Gains Tax individual phase. CCBL was formed in 2018 but has not started operations till now. You 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, the brokerage houses are suffering in many cases, work must also be done on that.
In the meeting, the representatives of top brokerage houses discussed the recovery of investors’ confidence, liquidity crisis, capital gains tax, market makers, categories, policy support, facilitating cash withdrawals, financial reporting system, implementation of floor prices to overcome the current market situation and put the market on a solid footing in the future. Discussed about not doing, foreign investment attraction, reform of IPO system, margin loan reform, interest on CC account, CCBL, not bringing bad IPO, margin debt ratio, review of demutualization scheme and Capital Market Stabilization Fund.
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