The Investment Corporation of Bangladesh (ICB) has sent a letter to the government, seeking some facilities for the Bangladesh Fund to make it lucrative for investment.
“After scrutinising the proposals, the government will discuss it with ICB within a few days,” said a finance ministry official.
“If we approve the demands, the Bangladesh Fund will become worthwhile for the investors.” The fund will play an important role in halting the bearish trend in the stockmarket, he added.
ICB sought an extra 5 percent of total initial public offerings (IPO) of the market, which is now 10 percent for the mutual fund sector. ICB also demanded relaxation of the 10 percent exposure rule, as the size of the fund is large. It also wants to invest 50 percent of the fund in the money market, but the Securities and Exchange Commission approved only 25 percent.
ICB requested the government to consider the fund as an approved security. Approved securities would not have to deposit any security money to Bangladesh Bank.
Among other demands, ICB wants a money-whitening provision for individuals and institutional investors at a 10 percent flat tax rate. It also demanded a 10 percent IPO of government companies and 5 percent IPO of private companies.
Khairul Hossain, ICB chairman, said: “The Bangladesh Fund will be invested in the market this week, after registration with the SEC.”
Courtesy of The Daily Star
