Finance ministry to sit with BB, BSEC, NBR and ICB on Dec 7

The finance ministry has called a meeting with Bangladesh Bank, Bangladesh Securities and Exchange Commission (BSEC), National Board of Revenue (NBR), and Investment Corporation of Bangladesh (ICB) over the current market situation.

The meeting chaired by Financial Institutions Division Additional Secretary Mafiz Uddin Ahmed is scheduled for December 7. He is also the convener of the coordination and monitoring committee of the capital market.

On Tuesday, a meeting was held between the BB and BSEC about the unclaimed dividends and stock market exposure ceiling for banks.

After the meeting, the BSEC said that the BB would also allow banks to transfer unclaimed dividends to the market stabilisation fund after bringing some amendments to the capital market stabilisation fund rules.

The BB also agreed to relax the rules on banks’ investment in stocks in a move to shore up the capital market and settle the differences between the bank and securities regulators, said the BSEC.

It also said the banks’ investments in stocks will be calculated based on cost price instead of the market price, it said. The stockmarket exposure ceiling for a bank is 25 percent of their capital, according to the banking company law.

The news left a positive impact on the market as stocks rebounded sharply on Wednesday, with the benchmark DSEX index surging the largest single-day gain in 19 months.

The DSEX index registered rapid gains, soaring by more than 143 points or 2 per cent to settle at 6,847.

However, the central bank in a statement on Wednesday said, “No decision has been taken yet about the issues but some media outlets reported about the outcome of the meeting by quoting the BSEC delegation, which was not accurate.”

The unclaimed fund transfer by the banks and NBFIs to the capital market stabilisation fund, and dividend disbursements by the loss-making banks and NBFIs were contradictory to the laws, which was told the BSEC delegation during the meeting, it said.

On Thursday, Dhaka stocks jumped as investors rushed to buy scrips after media reported that the finance ministry will call a meeting with BB, BSEC, and NBR over the capital market situation, market analysts said.

The BB and BSEC have been involved in a long dispute over the corporate governance code, Banking Companies Act, 1991 and the Financial Institutions Act, 1993.