Black money to boost bearish bourses if investment allowed, hope insiders

Investors and market insiders are eyeing up a positive impact on the stock market as the next budget may allow whiteningof black money through investment in the share market.

The coronavirus situation has created a downturn in the already dogged stock market. To overcome this, various stakeholders of the market have already demanded that the finance minister be given the opportunity to invest black moneyin the stock, say sources in the National Board of Revenue (NBR).

On April 28, the DSE Brokers Association of Bangladesh (DBA) offered to invest black money in the stock market to overpower the current downturn in the stock market. The proposal given to the finance minister said that in order to pump liquidity into the stock market, it is necessary to give investmentopportunity to undisclosed money. It is proposed to give investment opportunity on condition of investing in bond market and secondary market on the basis of 1:1. In addition, money invested in bonds will be blocked for 3 years. That bond must be transferable through the exchange.

Md. Rakibur Rahman, Director of Dhaka Stock Exchange said the country's capital market has been going through a very bad time for a long time. In the meantime, the stock market has become more upset riding on the back of the coronavirus and lockdown. It is necessary for the government to take immediate steps to overcome this situation. In this situation, the capital market will benefit if black money is given unconditional opportunity of investment in the upcoming budget. If the new commission takes initiative in this regard, the overall economy of the country including investors and stakeholders will be benefitted.

Investors' organization Bangladesh Capital Market Investors Unity Council also demanded that black money be given the opportunity to invest in the stock market. The organisation wants the opportunity to invest black money in the stock market for the next 5 years. The proposal calls for unconditional opportunities to launder black money by investing in the stock market.

Bangladesh Capital Market Investors Unity Council President Mizanur Rashid Chowdhurytold The Business Post that it is time to invest in the stock market. There is a huge amount of black money in the hands of a section of society in the country. That was seen during the anti-casino campaign. When this huge amount of lazy black money comes to the stock market, it will give impetus to the market. The owner of the money along with the general investor will also benefit.

The President of Bangladesh Merchant Bankers Association (BMBA) Sayedur Rahman said, if given the opportunity to invest black money in the epidemic caused by coronavirus, the stock market will be dynamic. This will benefit everyone, including investors.

Accoring to the National Board of Revenue (NBR), two proposals are being considered to whiten black money. Firstly, if the money earned illegally with 5-10 percent tax is declared, no question will be askedand secondly, expansion of the benefits of whitening existing black money.

In the next fiscal year, by reducing the amount of tax, the purchase of land may also be given the opportunity to use black money. In consultation with the top echelons of the government, the method by which the black money will be given a chance to be whiten will be finalized, said a responsible source in the NBR.