BB Interacts With BSEC
Increased bank investments in to capital market underscored
Functionaries of the Bangladesh Security and Exchange Commission (BSEC) on Monday at a meeting with the Governor of Bangladesh Bank and other senior officials discussed the situation in the just reopened stock market and decided to jointly work for development of stock market.
The meeting discussed various measure how to develop the stock market and money market in support of the stock market development.The meeting earmarked a focal point from both sides - that BSEC and BB and devised the timely steps at a monthly meeting to strengthen the market.
The meeting was also attended by chairman and senior functionaries of the Dhaka Stock Exchange and Chittagong Stock Exchange.
The meeting took place as the market index sharply plummeted on the second day of reopened trading on Monday while poor presence of investors on the floor showed lack of enthusiasm and confidence among market participants.
Many said market participants are observing the situation at this moment.
The meeting of the BSEC functionaries led by the newly appointed chairman Prof Shibly Rubayat-ul- Islam and accompanied by three other commission members mainly discussed how Bangladesh Bank would increase the flow of investment by banks in the stock market.
Discussions were mainly focused on how Bangladesh bank would secure investment of Tk 200 crore by individual bank in the stocks as per decision before the lockdown on January 16, 2020.
The decision was earlier taken at a meeting at the Prime Minister's office. Bangladesh Bank senior official having access to the meeting said they have decided to prompt banks to make their promised investment in the stocks to revamp the market.
Bangladesh Bank would supervise such investment in the stocks by banks and if needed new liquidity would be supplied to them by way of various banking mechanism.
The meeting also discussed on central bank's ban on disbursement of dividend by banks to small investors in view its recent restriction on such disbursement until September 30 this year. Bangladesh Bank agreed now to relax the ban for distribution of dividend to small investors.
Bangladesh Bank also agreed in the meeting to hold interest on bank loans for stock market investment in bloc account for two months during the coronavirus pandemic.