DSE welcomes budget as investment supportive

Dhaka Stock Exchange (DSE) authorities welcomed the proposed national budget for the financial year 2016-17 (FY17), terming it an investment-friendly budget as the incentives proposed in the budget would help expedite the capital market, reports BSS.
Listing the budget proposals for the stock market, DSE Chairman Justice Siddiqur Rahman Miah also greeted Finance Minister AMA Muhith for presenting a budget, which would bring many benefits to the capital market and to the investors as well.
DSE chairman was addressing a post budget press conference at its premises in the city. In the budget, Muhith proposed tax exemption for margin loan and interest up to 10 lakh induced remission benefit for small investors in the capital markets, which
would ensure more protection for small investor's interest, he said.
The chairman mentioned some key areas of the finance minister's proposals while unveiling the national budget for 2016-17 financial year (FY17) at the Jatiya Sangsad on June 02.
Referring to the Bangladesh Securities and Exchange Commission (Public Issue) Rules, 2015, Muhith said under these rules, fixed price method for IPOs (initial public offerings) at face value and book building method for IPOs with premium prices have been made mandatory.
Under the system, around Tk 14,000 crore would be sourced annually from the capital market, which would play a vital role in the country's economy, he added.
A total of Tk 637 crore was given to the small share investors from the small investors' assistance fund, the minister mentioned.
The finance minister said various reform activities were carried out to maintain stock market discipline, safeguard investors' interests, ensure compliance with the Securities Act and improve institutional capacity. He also noted that a panel of auditors for auditing listed companies has also been published to ensure discipline in audit activities.
On the other hand, the minister said that the BSEC has signed a memorandum of understanding with Securities and Exchange Board of India to provide training to officers, which will help improve capacity of BSEC.
The DSE chief requested the government to consider some other proposals like five-year tax exemption instead of demutualization, reduce sources tax rate, tax free dividend up to taka 1lakh from existing Taka 25, 000, withdrawal of stamp duty in the field of transferring the demutualized share and change the definition of income tax year.
He believed that the capital market will further go forward towards sustainable development as it is the key medium of long term financing of the country's economy..

 

DSE welcomes budget as investment supportive

Dhaka Stock Exchange (DSE) authorities welcomed the proposed national budget for the financial year 2016-17 (FY17), terming it an investment-friendly budget as the incentives proposed in the budget would help expedite the capital market, reports BSS. Listing the budget proposals for the stock market, DSE Chairman Justice Siddiqur Rahman Miah also greeted Finance Minister AMA Muhith for presenting a budget, which would bring many benefits to the capital market and to the investors as well. DSE chairman was addressing a post budget press conference at its premises in the city. In the budget, Muhith proposed tax exemption for margin loan and interest up to 10 lakh induced remission benefit for small investors in the capital markets, which would ensure more protection for small investors interest, he said. The chairman mentioned some key areas of the finance ministers proposals while unveiling the national budget for 2016-17 financial year (FY17) at the Jatiya Sangsad on June 02. Referring to the Bangladesh Securities and Exchange Commission (Public Issue) Rules, 2015, Muhith said under these rules, fixed price method for IPOs (initial public offerings) at face value and book building method for IPOs with premium prices have been made mandatory. Under the system, around Tk 14,000 crore would be sourced annually from the capital market, which would play a vital role in the countrys economy, he added. A total of Tk 637 crore was given to the small share investors from the small investors assistance fund, the minister mentioned. The finance minister said various reform activities were carried out to maintain stock market discipline, safeguard investors interests, ensure compliance with the Securities Act and improve institutional capacity. He also noted that a panel of auditors for auditing listed companies has also been published to ensure discipline in audit activities. On the other hand, the minister said that the BSEC has signed a memorandum of understanding with Securities and Exchange Board of India to provide training to officers, which will help improve capacity of BSEC. The DSE chief requested the government to consider some other proposals like five-year tax exemption instead of demutualization, reduce sources tax rate, tax free dividend up to taka 1lakh from existing Taka 25, 000, withdrawal of stamp duty in the field of transferring the demutualized share and change the definition of income tax year. He believed that the capital market will further go forward towards sustainable development as it is the key medium of long term financing of the countrys economy..