TK 900CR Stock Scheme
Fund to be released as per demand of supervision body
The first instalment of the Tk 900 crore refinancing scheme for the affected small market investors would be released as per the recommendation of the supervision committee that would be formed by this week, Bangladesh Securities and Exchange Commission officials said.
‘Two of the three-member supervision committee have been named till today (Monday),’ BSEC executive director Saifur Rahman said.
‘We have already sent a letter to the Bangladesh Bank to name their representative in the committee,’ he said.
Saifur will represent BSEC in the committee while Investment Corporation of Bangladesh will be represented by its general manager Nasir Uddin Ahmed.
As per the guideline of the Capital Market Affected Small Investors’ Assistance Fund that was approved by the finance ministry on August 19, the BSEC representative will be the head of the committee.
‘We are hopeful that the committee will be finalised by tomorrow (Tuesday),’ Saifur said. ‘After the formation of the supervision committee it will apply to the BB to release the first instalment of Tk 300 crore,’ he said.
The rest Tk 600 crore will be released in two other instalments as per the recommendation of the committee, he added.
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 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.
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.
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
