FE Report
The premier bourse will sit with the securities regulator today (Wednesday) to discuss the ongoing situation of the capital market and some demands made by stock brokers, officials said.
The officials of Dhaka Stock Exchange (DSE) said the other issues that will be discussed at Wednesday's meeting are: the deduction of bank's investments, which have been made in equities of subsidiaries and non-listed companies, from their exposure to capital market, the procedure of approving IPO (initial public offering) proposals by the securities regulator and the brokers' demand for quota in IPOs.
The meeting will be held at the office of the Bangladesh Securities and Exchange Commission (BSEC).
Since the country wide blockade started on January 6 last, the DSE's benchmark index DSEX shed 6.29 per cent or 313 point to close at 4656 points on Tuesday.
On the other hand, the average turnover value also declined by 39.18 per cent to close at Tk 1.94 billion during the same period of political turmoil.
Under such situation, the premier bourse will sit with the securities regulator to discuss how the market situation can be improved.
DSE managing director Dr. Swapan Kumar Bala said the premier bourse has already made a plea to the central bank for allowing banks' investment as per the provision made earlier by its circular issued on November 24, 2011.
The circular of November 24, 2011 said that the bank's investments made in the equities of subsidiaries and in shares of non-listed companies will not be counted as part of bank's exposure to capital market.
"We have submitted the proposal to the central bank following the demand of top brokerage firms which are also the subsidiaries of banks," Mr. Bala said.
He said it's the matter of central bank whether it would consider the demand of brokerage firms.
"But I think the central bank can allow the banks' exposure to the capital market as per the circular issued on November 24, 2011," Bala added.
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