Dhaka, Bangladesh (BBN)-A total of BDT 6.37 billion were disbursed among the small investors of stock markets from the small investors’ assistance fund in Bangladesh, said Finance Minister AMA Muhith on Thursday.
The minister disclosed this while placing the BDT 3.40 trillion national budget of Bangladesh at National Parliament in Dhaka this afternoon.
The finance minister highlighted his government’s initiatives to strengthen the country’s capital market while unveiling the national budget for the fiscal 2016-17.
Various reform activities were carried out to maintain stock market discipline, safeguard investors’ interests, ensure compliance with the Securities Act and improve institutional capacity, he pin-pointed during the budget speech.
Referring to the Bangladesh Securities and Exchange Commission (BSEC) (Public Issue) Rules, 2015, Muhith said under these rules, fixed price method for IPOs (initial public offerings) at face value and book building method for IPOs with premium prices have been made mandatory.
The minister expected that under the system, around BDT 140 billion would be sourced annually from the capital market, which would help strengthen the market.
A panel of auditors for auditing listed companies has also been published to ensure discipline in audit activities, he added.
On the other hand, the minister said that the BSEC has signed a memorandum of understanding (MoU) with Securities and Exchange Board of India to provide training to officers, which will help improve capacity of BSEC.
“Moreover, a project is being implemented with the assistance of ADB for overall reform and development of capital market. The capital market is now being properly regulated and has become stable as a result. It is now ready to flourish as a pillar of the financial sector”, the minister said.