Monday, February 26, 2024

Stock market stimulus package announced

The Security and Exchange Commission on Wednesday announced the stock market stimulus package which included some immediate steps to the relief  of mostly institutional inventors and pledges for some special schemes for non-institutional investors.
The commission chair, M Khairul Hossain, in the afternoon announced a number of steps including relaxation of the capital market exposure calculation system for banks and extension to the deadline for adjusting single borrower exposure limit for banks up to December 31, 2013 to stabilise the stock market and to protect the right of the small-scale investors.
The stimulus package contained short-, mid- and long-term steps from the commission and other regulators. The short-term steps provision for the exclusion of bank’s investments in subsidiary merchant banks and brokerage houses from the capital market exposure calculation. Long-term equity investments of banks would also be excluded from such calculation.
The commission said that banks would be allowed to practice net-off system instead of the existing net loss system in bank’s loss provisioning of stocks.
The short-term steps also include allowing merchant banks to collect 49 per cent of their capital from sources other than parent companies.
The steps provision for withdrawal of 10 per cent capital gains tax on foreign firms and non-resident Bangladeshis, expediting the reimbursement of commissions for foreign brokerage houses, 30 per cent mandatory stake for sponsors/directors and immediate investments of life insurance funds.
The mid-term measures, planned to be implemented in three months, include the opening of investment advisory services and equity research publications to facilitate investors, academics and policy-makers.
A process of raising capital for merchant banks and subsidiary companies and a corporate governance guideline would be finalised as part of the mid-term steps.
The long-term steps, planned to be implemented in four to six months, include formulation of a financial reporting act to ensure the quality of auditing and accounting disclosure of listed companies.
Such steps also provision for the strengthening of the Insider Trading Rules, update of the Investor Protection Rules and the demutualisation of the stock exchanges.
The commission would strengthen its surveillance and monitoring system and make the mutual fund sector more attractive in the long term.
The commission chairman also announced to form a six-member committee to recommend a special scheme in two months for small-scale investors who had suffered heavy losses in the depression that spanned 11 months.
The committee, headed by the Investment Corporation of Bangladesh managing director, Mohammad Fayekuzzaman, also includes one representative each of the Securities and Exchange Commission and the banking division, managing director of the Central Depository of Bangladesh Ltd and chief executive officers of the Dhaka and the Chittagong Stock Exchange.
‘The announcement appears to be positive. It will surely give a breathing space to institutional investors, especially banks,’ Mahmood Osman Imam, a professor of finance in Dhaka University, said.
When his attention was called to the issue of reduction of the cash reserve requirement and the statutory liquidity ratio, which was in the SEC proposal but was not announced as part of the stimulus package, Osman said, ‘The government might consider the macro economic impact of the matter as such a reduction could increase inflation.’
The Dhaka Stock Exchange president, Shakil Rizvi, in his reaction to the package, said that the package would have a positive impact on the market.
The benchmark general index of the Dhaka Stock Exchange, before the announcement of the package on Wednesday, meanwhile, lost 4 per cent, or  224.30 points, to close the day at 5,372.65 points.
Market operators said that speculations about the inclusion of reduction of the cash reserve requirement and the statutory liquidity ratio among investors and profit-taking sell-offs pulled the index down on the day.

-With New Age input

Related News

bKash communications chief Mahfuz Sadique dies at 40

News Desk : dhakamirror.com Mahfuz Sadique, chief communications officer of mobile financial services firm bKash, passed away in Bangladesh capital Dhaka Friday morning. He was 40. Mahfuz died around 9:00am while undergoing treatment at a hospital in the capital, bKash said in a statement. Mahfuz, who began his career as a journalist at New Age, ... Read more

Prices for potatoes increase by 229% from the previous year

Prices for potatoes varied from Tk16 to Tk22 per kg at this time last year. News Desk : dhakamirror.com Despite the presence of both new and old potatoes in the market, potato prices have soared by 229% compared to late December last year. According to the Trading Corporation of Bangladesh (TCB), the selling price for ... Read more

LGED engineer dead, UNO among 3 injured in Panchagarh car crash

News Desk : dhakamirror.com An engineer of the Local Government Engineering Department (LGED) was killed and three other government officials were injured when the vehicle of a UNO hit a roadside tree in Panchagarh Sadar upazila early today. The deceased was identified as Abu Sayed, 33, upazila engineer of LGED from Pirganj upazila of Thakurgaon. ... Read more

UNHCR calls for rescue of Rohingyas stranded in Andaman Sea

News Desk : dhakamirror.com The United Nations (UN) Refugee Agency, UNHCR, has made an urgent appeal to all countries in the region, particularly those in the area surrounding the Andaman Sea, to swiftly deploy their full search and rescue capacities in response to reported vessels in distress with hundreds of Rohingya at risk of perishing. ... Read more

Over 200 RMG workers injured in Comilla while evacuating factory during earthquake

News Desk : dhakamirror.com Over two hundred garment workers in Cumilla’s Chauddagram have been injured while trying to evacuate the factory building of Amir Shirt Garment Limited during today’s earthquake. A 5.5 magnitude earthquake at a depth of 10km jolted Dhaka, and parts of the country at 9:35am today (2 December). The epicentre of the ... Read more

Daughter hacked father to death in Chattogram

News Desk : dhakamirror.com A father was hacked to death by his own daughter during an altercation over a trivial matter at Lohagara upazila in Chattogram on Friday (1 December). The deceased was identified as Abdur Rahman, 50, of Putibila Sarai village under the upazila. Police have detained the daughter, Humaira Begum, 23, soon after ... Read more

HSC results: Dhaka has most GPA-5 achievers, while Barishal has highest pass rate

News Desk : dhakamirror.com Dhaka had the highest number of GPA-5 recipients in the HSC exams, while Barishal Education Board had the highest pass rate among nine educational boards. Education Minister Dipu Moni announced today that the overall pass rate in the nine general boards is 75.90 percent. In terms of pass rates, Barishal ranked ... Read more

PSC postpones 45th BCS written tests

News Desk : dhakamirror.com The Bangladesh Public Service Commission (PSC) has decided to postpone the written tests for the 45th Bangladesh Civil Service examination, which was scheduled to be held on 27 November. The announcement came through a notification signed by Ananda Kumar Biswas, the exam controller of PSC, issued on Friday. PSC held a ... Read more

After stabbing younger sister to death woman ‘kills herself’ in Hazaribagh

News Desk : dhakamirror.com A woman reportedly killed herself after stabbing her younger sister to death in the capital’s Hazaribagh area today. Police said the incident took place in the Kalunagar area at around 12am on Monday (13 November). The deceased have been identified as Jasmine Akhtar, 44, and her younger sister Nasreen Akhtar, 30. ... Read more

Oman stops issuing new visas to citizens of Bangladesh

News Desk : dhakamirror.com The Sultanate of Oman has suspended the issuance of visas across all categories for Bangladeshi nationals, the Royal Oman Police (ROP) said on Tuesday. The decision was effective from Tuesday, reported Oman-based English newspaper the Times of Oman referring to the Royal Oman Police. The report said that the ROP confirmed ... Read more

Dhaka girl Nupur takes over as chairman of Unilever for a day

News Desk : dhakamirror.com Seventeen-year-old Nupur from Dhaka, had the opportunity to take over Unilever’s chairman position for one day on Thursday. There, she symbolically carried out the roles and responsibilities of Zaved Akhtar, the chairman and managing director of Unilever Bangladesh, said a press release. Nupur being an active youth club member, works for ... Read more

Hospitals must follow guidelines, orders HC

News Desk : dhakamirror.com The High Court on Thursday asked the government to take steps to make it compulsory to follow the relevant guidelines for the prevention of performing unnecessary caesarean section surgery at government and private hospitals and clinics. The court has also directed the government to widely circulate the guidelines within six months. ... Read more

Woman delivers birth to five babies at DMCH

News Desk : dhakamirror.com A woman has given birth to five premature babies. The quintuplets were born at the Dhaka Medical College Hospital (DMCH) at 10am on Thursday to Mansura Begum, 22, the wife of CNG driver Md Mamun from Bandardia village in Shibpur upazila of Narsingdi district. One of the newborns, however, died shortly ... Read more

Tk8.44 cr fine imposed to Kazi Farms, 3.44 crore to Suguna Food

News Desk : dhakamirror.com The Bangladesh Competition Commission has fined Kazi Farms Group and Saguna Food and Feeds on charges of market manipulation causing abnormal rise in broiler chicken prices. BCC officials said that the companies must deposit the fine amount to the BCC within 10 working days. If they fail to deposit the fine ... Read more

Heritage volunteers visit national museum

News Desk : dhakamirror.com The heritage volunteers participating in UNESCO World Heritage Volunteers Programme 2023 visited national museum in Dhaka on Sunday. The ten-day workshop programme organised by Nagar Upakhyan-Perceive started on October 1, said a press release. The Heritage volunteers’ team visited national museum which is on the UNESCO World Heritage tentative list on ... Read more

Fare for Bangladesh-India trains to increase from November 10

News Desk : dhakamirror.com Ticket prices of three inter-country trains on Bangladesh-India routes are going to be hiked from November 10. The fares are going to increase due to high exchange rate of US dollar and rising travel tax, according to the Bangladesh Railway officials. The trains are – Maitree Express on Dhaka-Kolkata, Bandhan Express ... Read more

Man, nephew killed by lightning

News Desk : dhakamirror.com A man and his nephew were struck by lightning in Satarbari village of Longair union under Gafargaon upazila of Mymensingh yesterday. The deceased were identified as Sohel Mondol, 40, a trader of pharmaceutical drugs, and his nephew Razib Mondol, 35 a rice trader in the village. Quoting locals, Raju Ahmed, officer-in-charge ... Read more

TV sales decline despite World Cup: Is streaming to blame?

News Desk : dhakamirror.com The ICC Cricket World Cup 2023 captures the attention of sports enthusiasts across the world and an intriguing trend is emerging in Bangladesh’s television market. While events of this magnitude have traditionally led to an increase in TV sales, recent figures from September show a 30% decline compared to the same ... Read more

Heritage volunteers visit Paharpur archaeological museum

News Desk : dhakamirror.com The heritage volunteers participating in UNESCO World Heritage Volunteers Programme 2023 visited Paharpur archaeological museum in Naogaon on Friday. The ten-day workshop programme organised by Nagar Upakhyan-Perceive started on October 1, said a press release. The Heritage volunteers’ team visited Paharpur archaeological museum which is on the UNESCO World Heritage tentative ... Read more

Child among three dead as mud walls collapsed in rain in Gazipur

News Desk : dhakamirror.com Three people including an eight-year-old child died in separate incidents of mud walls collapsing during heavy rain in Sadar and Kaliakoir upazilas of Gazipur. The deceased are Faridul Islam, 8, son of Matiur Rahmon of Konabari Baimile under Sadar upazila, and Imarat Hossain, 65, and his wife Achia Begum, 56, of ... Read more