Dhaka, Bangladesh (BBN) – Top brokers of the premier bourse have recommended extending the deadline for bringing down banks’ investment exposure in the stock market by another two years.
As per the recommended deadline, if allowed, banks will have until July 2018 instead of the existing July 2016 for lowering their exposure to the permissible limit.
The extension, the brokers believe, will ensure banks’ active participation as institutional investors in the secondary market, which is now ailing.
On Monday, the top brokers also urged the stock market regulator not to approve the initial public offerings (IPOs) the proceeds of which will be used for loan repayment.
They also requested the Dhaka Stock Exchange (DSE) board and management to sit with Bangladesh Securities and Exchange Commission (BSEC) and Bangladesh Bank (BB) to find ways to stabilise the stock market.
The proposals came at a meeting between the DSE and top 50 stockbrokers at the premier bourse, organised to find solutions to arrest the current volatility in the market.
DSE Chairman Justice Siddiqur Rahman Miah chaired the meeting attended by two former DSE presidents–Rakibur Rahman and Ahasanul Islam Titu–and other top 50 brokers.
At the meeting, the brokers expressed concern over the ongoing situation of the capital market.
The representatives have also sought the formalisation of buy-back rules by the securities regulator.
BBN/SSR/AD-24Mar15-11:14 am (BST)
