A group of stockbrokers on Sunday sought assistance from the Bangladesh Securities and Exchange Commission to get Tk 10,000 crore in low-interest funds from the government to invest in the ailing stock market. The stockbrokers met BSEC chairman M Khairul Hossain to discuss the current market situation. DSEX, the key index of Dhaka Stock Exchange, lost more than 1,354 points in last 10 months, eroding Tk 71,752 crore in market capitalisation.
Earlier, the stockbrokers especially the banks’ subsidiary brokerage houses had submitted a proposal to the finance ministry, seeking Tk 10,000 crore to inject into the capital market. Dhaka Bank Securities and EBL Securities are among the 25 signatories to the proposal.
EBL Securities chief executive officer Sayadur Rahman said they wanted the fund for a period of six years at a flat interest rate of 3.0 per cent. He said all market intermediaries such as stockbrokers, merchant banks, and asset management companies would be allowed to get the loan facility. He said the market intermediaries wanted this fund to play a supportive role. He said that the government would decide on who would govern the fund and set modality to secure the funds.
The Bangladesh Bank or Sonali Bank may be an option for disbursing the fund, he said. The fund will only be invested in the secondary market. A stockbroker said that the central bank could engage one or more representatives to disburse and recover the loans.
Source: New Age, 09.12.2019