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Merchant bankers seek policy support for MNC listing

Staff Correspondent | Published: 22:01, Feb 15,2020 | Updated: 22:06, Feb 15,2020

 
 

The Bangladesh Merchant Bankers Association on Saturday recommended that the government should provide policy support, including tax benefits, to multinational and renowned local companies to encourage them to get listed on the stock markets.

BMBA president Sayadur Rahman made the recommendations at a press briefing held at a hotel in Dhaka to make the country’s capital market vibrant and encourage investment in the market.

The association thinks special facilities such as tax and VAT waivers are required to bring the large companies to the market.

At the briefing, the BMBA also praised the government for taking a number of measures, including the move to allow each bank to form a Tk 200-crore special fund for stocks, to stabilise the capital market.

The Bangladesh Bank on Monday allowed the banks to set up a Tk 200-crore special fund each by taking loans at 5 per cent interest rate from the central bank to invest in the stock market, saying that the banks would be allowed to take the loan under the scheme till January 13, 2025.

Rejecting the criticism that the government was giving the taxpayers’ money to the banks, the BMBA said that the fund was not a subsidy or grant to the banks.

It said that the government’s recent decisions, including that to bring more state‑run companies to the capital market, would play an important role to make the market vibrant and increase its strength and depth.

In addition, it is important to provide policy support to multinational companies and reputed local firms to encourage them to become listed on the stock market, it said.

Some of the businesses are now reluctant to enter the capital market as they find it easier to avail funds from the banks, it added.

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