TK 900CR Stock Scheme
3-member supervision body to be formed by this week
A three-member supervision committee would be formed by this week to operate the Capital Market Affected Small Investors’ Assistance Fund of Tk 900 crore, Bangladesh Securities and Exchange Commission sources said. The committee would be formed as per the memorandum of understanding that was signed among the Bangladesh Bank, BSEC and Investment Corporation of Bangladesh on Thursday last.
As per the guideline that was approved by the finance ministry on August 19, the merchant banks and brokerage houses would apply to the committee for refinance loans against the investors’ accounts that had already got 50 per cent interest waiver on margin loans as per the compensation package offered by the government.
ICB general manager Nasir Uddin Ahmed would represent his organisation in the committee, but representatives from the BB and the BSEC are yet to be named, BB sources said.
The supervision committee will approve the loans after examining the documents that would be provided by the merchant banks and brokerage houses with the application.
The committee will also set a deadline to submit applications to this end.
‘Opening a separate bank account for the fund is under process. Investment Corporation of Bangladesh worked to this end on Sunday. Hopefully they would be able to receive the fund by tomorrow (Monday),’ Bangladesh Securities and Exchange Commission executive director Saifur Rahman told New Age.
According to the final guideline, the ICB will get the fund worth Tk 900 crore at 5 per cent interest from the BB and the ICB will distribute the fund among the merchant banks and brokerage houses at 7 per cent interest.
The merchant banks and brokerage houses will be allowed to give loans to the affected small scale investors at up to 9 per cent interest, the guideline said.
The draft guideline had suggested that the BB would charge the ICB 4 per cent interest for the fund and the ICB would disburse the fund at 6 per cent interest rate to the merchant banks and brokerage houses.
The final guideline said the affected small scale investors would get the loans through their respective merchant banks and brokerages houses.
-With New Age input
