The port city's bourse, Chittagong Stock Exchange (CSE), has urged the government to include capital market under the stimulus package to help investors and traders survive during the corona-induced trying times.
It has sought a stimulus package of Tk1,050 crore to the finance ministry and the Bangladesh Securities and Exchange Commission (BSEC).
In a statement, CSE Chairman Asif Ibrahim said the stock exchange, its brokers and dealers had been incurring huge losses due to the prolonged shutdown. Small traders were now hard pressed while staffers at the brokerage houses risked losing their jobs in the Covid-19 emergency, he added.
“The stimulus of Tk1,050 crore will save all relevant quarters hardest hit by the current corona-induced situation,” Asif said in the statement, issued on Monday.
He also said the small investors who took margin loans at higher rate had to bear huge liabilities which could not be met within the shortest possible time.
If the government offers a financial package to subsidize a major portion of the interest amounting to Tk400 crore, it would be of great help for the small investors, he pleaded.
The stock exchange also urged to reduce the corporate tax rate for CSE from 35% to 10%.
CSE proposed to reduce the AIT (advance income tax) on their every transaction value to 0.0025%, from 0.05%.
CSE seeks Bangladesh Bank to allocate a special fund of Tk500 crore which will be distributed among its brokers.
"We believe that this opportunity will be a great help for CSE brokers who directly participate in the development of stock market,” Asif added.
Amid the closure of two bourses until April 25, its stakeholders and the government are depriving from huge revenue earnings, while some 12,000 employees of brokerage houses risk losing their jobs should the coronavirus pandemic persist, analysts say.
