Bangladesh Securities and Exchange Commission has asked almost all the capital market stakeholders including listed companies and mutual funds to deposit money to ‘Investment Education Fund’ in the form of grant for the nationwide financial literacy programme that will be carried out by the commission.
The BSEC also instructed Dhaka and Chittagong stock exchanges, Central Depositary Bangladesh Limited, stock brokers, merchant banks, credit rating companies, asset management companies, fund managers and listed corporate bonds to contribute to the fund.
Collection of the grant from the stakeholders and contributions from the BSEC’s fund would allow the regulator to spend around Tk 7 crore each year, a BSEC official said.
The capital market regulator issued the letter based on a decision of the 595th commission meeting held on January 7, this year, a BSEC official told New Age recently.
The decision was taken under the rules approved by the BSEC on December 26, 2016 titled Bangladesh Securities and Exchange Commission (Investment education development and training) Rules, 2016.
The rules allowed the commission to carry on a nationwide financial literacy programme and form an investment education fund as well.
The commission in its letter asked CDBL to provide Tk 1.50 crore, DSE Tk 1 crore, CSE Tk 0.50 crore.
Besides, total 400 stockbrokers of both the stock exchanges were asked to deposit Tk 20,000 each, 58 merchant banks Tk 50,000 each, 296 issuer companies Tk 50,000 each, 27 asset management companies Tk 50,000 each, 7 fund managers Tk 50,000 each and 37 mutual fund and corporate bonds Tk 10,000 each to the investment education fund under the capital market regulator.
As per the BSEC statistics, submission of the amount by the entities would allow the regulator to create a fund worth around Tk 5.80 crore.
The grant would be considered as the entities’ contribution to the fund for the financial year 2016-17, while the commission would seek more fund in the next fiscal year as the programme would continue for more than five years, meaning that the entities will have to provide the grant amount for next four years.
Besides, the regulatory body might also spend around Tk 2 crore from its own fund that remained idle as fixed deposit in the banks.
The BSEC official said that the fund would be spent for different workshops, seminars, formal and none-formal education, and awareness and distance learning programmes.
The fund will be abolished after the formation of Bangladesh Academy for Securities Market.
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