Dhaka Stock Exchange on Tuesday started disbursing the strategic share sales proceeds to its shareholders after National Board of Revenue slashed the bourse’s members’ capital gains tax to 5 per cent from 15 per cent.
DSE recently sold its 45,09,44,125 ordinary shares at Tk 947 crore to a Chinese consortium of Shenzhen and Shanghai stock exchanges to make the group its strategic partner.
The bourse on Tuesday distributed their portions in the proceeds to the shareholders who did not seek tax waiver or did not fall under the tax criteria.
DSE distributed the share of sales proceeds to three members till filing of the report at 7:00pm.
Ahmed Iqbal Hasan Securities, which did not seek the tax waiver, received its share of the sales proceeds.
NBR on Monday approved the tax cut on condition that the shareholders would invest their respective shares of the sales proceeds in the capital market within six months and keep the investments under a lock-in for three years, a DSE senior official said.
He said that around 190 members were interested to get the tax waiver and invest in the market. They opened separate beneficiary owners’ accounts to address the situation.
The Chinese group joined the DSE board after depositing Tk 947 crore on September 4, but the amount could have not been distributed to the DSE members before settling the tax issue.
The issue of tax cut proposal came to the fore since the sales of the DSE shares to the Chinese consortium.
On May 14, 2018, The DSE members had demanded a full waiver of the tax.
They had also said that they would invest the whole proceeds in the capital market, which was essential for the current bearish market.
The finance ministry, after analysing the proposals put forward by Bangladesh Securities and Exchange Commission, decided that tax on the bourses’ shareholders’ capital gains from sales of blocked shares should be 5 per cent from 15 per cent on condition that the shareholders would invest the net sales proceeds in the capital market for three years’ duration.
The ministry later asked NBR to consider the tax matter.
The BSEC on May 3 approved the DSE’s proposal for selling the shares to the Chinese consortium.
The country’s premier bourse on May 14 signed a strategic partnership agreement with the Chinese consortium to become DSE stra
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