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The capital market is likely to be strong soon

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Mahfuzul Islam, Senior Correspondent, Barta24.com | 19 May 2019, 11:55AM

The capital market is likely to be strong soon
Photo: Barta24.com

Dhaka (Barta24.com): After four months of fall the capital market is likely to be strong by six issues, as observed by the investors and market concerned.

They said, the increase of the capacity investment of the banks enlisted in the capital market, loan to the affected investors on simple condition and provisions of incentives in the next budget by the government. This good news will remove the lack of confidence among the investors. The liquidity crisis will also minimize. It will increase positive impact.

President of DSE brokers association and the former president of DSE Shakil Rizvi told Barta 24.com several initiatives have ben taken by the government. We hope that the capital market will improve.

Former President of Bangladesh Merchant Bankers Association Saidur Rahman told Barta24.com the exposer of the banks have been enhanced along with rescheduling the default loans. This will increase the earnings of the banks. The profit will increase. This will help the banks’ capacity to invest in the stock market. The shareholders will also get their profit share. Moreover in the next budget some positive decisions are coming. So I think that in near future it will create positive impact in the capital market. 

Investor Abdur Razzak told Barta24.com the circular published on last Thursday regarding exposer has brought the capacity of the banks to invest 5 thousand crores. If the banks invest then the capital market automatically gets stronger. Because the banking sector contributes 30 percent of the total capital market.

Like Abdur Razzak about 28.5 lakh investors hope that the capital market will be strong from Sunday(May 19.

According to the Central Depository Bangladesh Limited(CDBL) there are a total 28 lakh 47 thousand 564 BO account holders in DSE and CSE. These investors incurred a loss of more than 60 thousand crores during the price fall beginning from January 27. Of the total 30 thousand crores of DSE and 321 thousand crores of CSE was lost. The demonstrators came down on the streets and staged demonstrations on several occasions. It went to the notice of the Prime Minister who instructed the concerned to take immediate actions to save the investors. At the Prime Ministers instruction a set of steps were taken and now those steps are in implementing process.

Initiative to increase the capacity of ICB

The 856 crores earned by ICB from the investors as interest shall be reused now. The duration of the fund has been increased to 31st December of 2022 from 32st December of 2019.

IPO and Placement stopped

At the demand of the stakeholders no IPO application will be accepted by BSEC. The controlling authority has also taken initiatives to amend the public issue, 2015. No IPO application will be entertained from April 30 of the current year. However the IPOs submitted by some companies those will be scrutinized by the existing law.

Time of Lock in increased

BSEC has taken decision to increase thetime of Lock in to minimize the pressure on the new companies. Earlier the lock in counting began from the date of prospectus issue now it will begin from the date of first transaction. Because of this change the counting time of VFS Thread dying, ML dying, Indo-Bangla Pharma, Silva Pharmaceuticals, Cuttally Textile, SS steel, Square knit composite and Jenex Infosis have been extended.

Strict on maintaining 2 percent and joint 30 percent shares

A notification has been issued on the existing law regarding IPO, placement, IPO followed bonus share and the shares of the entrepreneurs and directors individually 2 percent and jointly 30 percent. They must fulfill the conditions within next 15 days.

Besides, more incentives are coming in the budget.