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Corporate - March 28, 2023

Arranging loan to increase liquidity in capital market

Mahfuz Emran: Institutional investors will be given loans from the Capital Market Stabilization Fund (CMSF). Regulatory body Bangladesh Securities and Exchange Commission (BSEC) has taken initiatives to increase liquidity in the capital market. According to BSEC sources, instructions will be issued in this regard soon.
Not everyone will get loans from the Capital Market Stabilization Fund. Institutional investors can take loans from CMSF only if certain conditions are met up. At the same time this loan money can’t be invested in any shares. Loans will be given from this fund as per BSEC guidelines.
When asked about this, Executive Director and Spokesperson of BSEC Mohammad Rezaul Karim said that the commission has taken initiatives to increase investment in the capital market. As part of this, it has been decided to provide loans to institutional investors from the Capital Market Stabilization Fund. Instructions in this regard will be issued soon.
The organization BSEC is working to eliminate the liquidity crisis in the capital market. This time, the commission wants to use CMSF to eliminate the liquidity crisis in the capital market. In view of this, initiatives have been taken to provide loans to institutional investors from CMSF. Incidentally, on August 22, 2021, BSEC approved the 11-member Board of Governors of Capital Market Stabilization Fund of Tk 20,000 crore on undistributed dividends of companies in the capital market. 4 posts in this Board of Governors will be appointed by BSEC. Among them, one is the post of chairman and the remaining 3 are the posts of members. Former Principal Secretary of Prime Minister’s Office and former Chairman of National Board of Revenue (NBR) Najibur Rahman has been given the responsibility as the chairman of this fund.
In addition, three other members are the executive director of BSEC Saifur Rahman, Associate Professor of Finance Department of Dhaka University Sheikh Tanzila Dipti and Editor of BhorerKagoj Shyamal Dutta. Besides, the other members of the Board of Governors of CMSF are Dhaka Stock Exchange (DSE) Managing Director Md. Tariq Amin Bhuiyan, Chittagong Stock Exchange (CSE) Chairman Asif Ibrahim, Central Depository Bangladesh Limited (CDBL) Independent Director AKM Nurul Fazle Babul, Director of Central Counterparty Bangladesh Limited (CCBL). Mohammad Tarek, Bangladesh Association of Publicly Listed Companies (BAPLC) President Azam J Chowdhury, The Institute of Cost and Management Accountants of Bangladesh (ICMAB) member AKM Delwar Hossain. Besides, General Manager (GM) of Agrani Bank as Chief of Operation. BSEC nominated Manowar Hossain.

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