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Dhaka Tribune

‘Govt to take fresh initiative to enlist SOEs with stock exchanges’

Update : 18 Dec 2013, 09:13 PM

Finance Minister AMA Muhith yesterday said the government would take a fresh initiative to enlist the state-owned enterprises with the stock exchanges as it has taken go-slow strategy due to the volatility of the capital market.

Prime Minister Sheikh Hasina earlier directed listing the SOEs, but the finance ministry delayed the process because of unstable market, he told reporters after a meeting with the board of directors of Dhaka Stock Exchange at the finance ministry. A decision would be taken soon, he said.

Muhith said the government has taken a number of measures, including amendments to laws, along with providing financial facilities because it wanted to create the country capital markets as “major source of business.”

About the stock market debacle in 2010, he said the crash could not be controlled because the prices of most listed companies were overvalued. He, however, pointed out the investment increased recently compared to the previous time.

DSE Director Ahmed Rashid Lali said the stock exchanges badly need five facilities, including tax holiday,   separate clearing and settlement company, withdrawal of 1.5% tax on stamps, and extension of provisioning period for banks and non-banking financial institutions.

Those facilities are not necessary due to the execution of demutualisation as the government is implementing the process, Lali said.

Meanwhile, a DSE statement said it demanded relaxing the rules for opening new branches by brokerage firms considering the present situation.  

Earlier, the securities regulator had put a curb on opening new branch of brokerage houses in and out of the city after market debacle three-year back. During the market booming, the DSE at the district level opened around 600 branches of brokerage firms to net more investors across the country.

DSE also met with National Board of Revenue Chairman Md Ghulam Hussain later on the day, placing almost similar demands.

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