Dhaka (Barta24.com): Some 107 members of Dhaka Stock Exchange(DSE) did not keep their commitment that they would invest their 25 percent share money they received from China consortium as the sale proceed. In return they would get tax waive from the government.
Accordingly they got government tax waive but did not keep their commitment of investing at this critical juncture of DSE when it is almost dropping to five -month low. At this time they have invested their money in other sectors. This was learnt from DSE sources.
Stock market concerned said that there is very strong paucity of new fund. To overcome this situation the capital market needs Taka 5 -10 thousand crores fund. But tragically the DSE members are quitting the capital market by selling away their shares resulting negative impact in the market.
According to DSE sources, 250 share holders are the owners of DSE shares. The total 250 owners made commitment that out of the total members 143 members would invest from September 9 of last year to April 15 of current year. Accordingly they withdrew Taka 537 crores from DSE with the tax waive facilities of 10 percent.
Of the total withdrawers 50-60 members invested their total money admitting the conditions. But some 90 members withdrew Taka 4.25 crores declaring that they would not invest in the capital market.
While at the beginning of the year DSE and DSE Brokers association leaders said that they would invest their sale proceed money amounting to Taka 947 crores sold to China consortium if they get tax waive. But they have invested their money elsewhere.
When contacted DSE director Minhaj Mannan Imon who told Barta24.com that in the interest of the capital market we wanted to invest if government waives total (15 percent )gain tax. But the government did not waive whole gain tax. Secondly, we who invested all are facing loss to the tune of 15-20 percent. Then why people will come to face loss?
On condition of anonymity one high official of DSE said that so far 233 members have withdrawn money of China consortium. There are 17 more remaining. They have many complications. There is a bar from commission not to make them payment. There are also bar from the family. But 90 members have invested in other sectors after withdrawing money of China consortium.
It may be mentioned here that as strategic investors under demutualized stock exchange the Senjen and Shanghai stock exchange purchased 25 percent share of DSE which is Taka 9.5 hundred croes in terms of money. DSE share holders took this decision of selling this share in view of overcoming the liquidity crises in the capital market and to maintain the confidence of the investors. For this act of nobility they demanded tax waive of total 15 percent gain tax from former Finance Minister AMA Muhit.
Accordingly the Finance Minister formulated the policy of 10 percent tax waive if the stock holders abide by six conditions including investment in capital market for minimum three years.