The Investment Corporation of Bangladesh has proposed the finance ministry inclusion of Tk 274.58 crore in refinance for five state-owned enterprises under the government\u2019s refinance move in implementing the compensation scheme for the small-scale investors
\naffected by the stock market crash in 2010.The ICB in the proposal last week said, \u2018If the government allocates Tk 274.58 crore for the SoEs under its refinance move, the capacity of the SoEs which had already implemented the scheme for the small-scale investors, will be strengthened.\u2019
\nIn April, the BSEC informed the finance ministry that ICB Capital Management Ltd, ICB Securities Trading Company Ltd, Investment Corporation of Bangladesh, Agrani Equity Investment Ltd and Janata Capital Ltd had implemented the government-announced compensation scheme.
\nThe BSEC also informed the ministry that excluding the loan amount rescheduled by the ICB and other four firms, it would require Tk 1,266 crore to implement the scheme fully.
\nOn May 5, the finance ministry asked the Bangladesh Bank to provide the merchant banks and brokerage houses with Tk 1,266 crore to reschedule the loans of the affected investors as per the BSEC\u2019s recommendation.
\nFollowing the BSEC\u2019s another recommendation the ministry also asked the National Board of Revenue to consider Tk 115.06 crore, interest on loans to clients waived by the merchant banks and brokerage houses, as tax free allowable expense for the merchant banks and brokerage firms.
\n\u2018The major portion of the loans given to clients by the merchant banks has remained unrealised because of an unexpected market condition. On the other hand, merchant banks are repaying the instalments of loans that were taken from the commercial banks at higher interest rates,\u2019 said the BSEC report.
\nThe government in March 2012 announced the compensation package that also included an interest waiver on margin loans for the investors who suffered losses during the market crash.
\nAfter the compensation package was announced, the merchant banks and brokerage houses informed the BSEC that the total number of affected investors was 9.53 lakh and Tk 230 crore would be needed for waiving interest of the investors and rescheduling of the loan-interest.
\nOnly 7,413 investors out of the total 9.53 lakh got the compensation so far, the BSEC report said.<\/p>\n

-With New Age<\/span> input<\/p>\n","protected":false},"excerpt":{"rendered":"

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