Mohammad Mufazzal
The securities regulator has given its opinion in favour of waiving 2.0 per cent stamp duty required for getting registration of Trust Deed of the mutual funds (MFs) considering the interest of the industry, officials said.
The opinion of the Bangladesh Securities and Exchange Commission (BSEC) came following a letter sent by the ministry of finance (MoF).
The state-run Investment Corporation Bangladesh (ICB) recently submitted a proposal to the ministry for giving waiver to stamp duty.
The BSEC officials said previously stamp duty worth only Tk 33.75 was applicable while getting registration of the Trust Deed of a MF.
Later, the government raised the stamp duty to 2.0 per cent of the total size of a MF.
A senior official of the MoF acknowledged the recommendation made by the securities regulator.
"The matter of giving waiver to stamp duty presently is in the Internal Resources Division (IRD) for further scrutiny," said the official of the MoF.
The BSEC officials said the regulator recommended for waiving stamp duty considering the interest of MF industry.
"The cost of floating a MF has increased abnormally due to 2.0 per cent stamp duty. For example, Tk 20 million will be charged as stamp duty while getting registration for a MF having the size of Tk 1.0 billion," the BSEC official said.
He said as per the securities rules, hundred per cent of sponsor money has to be returned to the sponsors if the formation of a MF becomes failure.
"But the stamp duty, which is paid during getting registration of Trust Deed, is not re-fundable. As a result, the AMC has to bear the loss due to non-refundable stamp duty," the BSEC official said.
He said the securities regulator has given its opinion only with regards to 2.0 per cent stamp duty for Trust Deed of MFs.
"Now it's the matter of the ministry as to how the waiver to stamp duty can be considered," the BSEC said.
The ministry wanted to know whether the permission of Bangladesh Bank (BB) is necessary in giving waiver to stamp duty.
In this regard, the securities regulator said the waiver to stamp duty can be considered following a regulatory clearance delivered for launching a MF.
mufazzal.fe@gmail.com
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