The Bangladesh Securities and Exchange Commission on Tuesday formed a committee to formulate a guideline about venture capital and private equity.
The three-member committee, headed by BSEC executive director Mahbubul Alam, was asked to submit its report to the commission in one month. The other two members of the committee are BSEC director Md Abul Kalam and deputy director Md Kawsar Ali.
The decision for formulating the guideline was taken at a regular commission meeting presided over by BSEC chairman M Khairul Hossain at BSEC conference room in the capital.
Venture capital is a business where a firm invests money in small start-up businesses that don’t have access to traditional financing.
Asked about the issue, BD Venture Limited managing director Shawkat Hossain said such move will help the industry in the coming days.
‘With such step the government acknowledged venture capital as an important sector,’ he told New Age on Tuesday.
Shawkat said venture capital requires raising fund for making investments where rules will play an impotent role.
‘The foreign investors need regulatory framework to make investment and when we will have proper rule for this then it will be easy for us to bring foreign investment through venture capital business,’ he said.
-With New Age input
