22 April, 2007
CSE Delegation Met Finance Adviser
Discussed Relevant Issues For The Development Of Capital Market & Placed
Pre Budget Proposals
Chittagong, Sunday, 22 April 2007: A delegation from CSE Board of Directors
led by its President, Mr. MKM Mohiuddin met the Finance Adviser Dr. A.B. Mirza
Md. Azizul Islam, this morning, at his Secretariat office.
Issues like: Rejuvenating the secondary bond market; Introducing new products
like derivatives in the market; Accelerating the implementation process of establishing
a Securities Training Institute in the country & Book Building method for
floating IPOs; Simplification of procedures for the NRBs to invest in the capital
market; Allowing a good portion of Pension & Other funds to invest in the
capital; Systematic Off-loading of Government’s shareholding in different
companies came into the discussions.
CSE placed its Pre Budget Proposals and invited the Finance Adviser’s
attention for giving due consideration to the proposals. Regarding the Tax issues,
CSE proposed the followings: i) 10% deduction on dividend income should be considered
as final tax i.e. tax rate on dividend income should be not more than 10%; ii)
In order to encourage the national rate of savings, the income tax on interest
earnings on bank deposits including on fixed deposits should not be more than
10%; iii) Difference of tax rate between listed companies and non-listed companies
should be at least 15%; iv) Tax rate of stock brokers is currently 0.015% on
transaction value. CSE proposes to consider and re-fix the same at 0.010% to
motivate the brokers to enhance more transaction in the stock market; and v)
Individual tax exemption limit should be increased to Tk 200,000.
The delegation also bring to the notice of Finance Advisor that it will be
redundant to bring the capital market under the framework of proposed ‘Anti
Money Laundering Act’, as all transactions in the stock exchanges are
done through the banking channels. This may create panic and harm the market.
It may be mentioned here that, in a recent move, Bangladesh Bank is considering
to bring the capital market under the purview of Anti Money Laundering Act.
During the meeting, Finance Adviser was very much positive and said he would
look into the proposals that are relevant while formulating the next budget.
CSE delegation team also included: First Vice President Mr. Nasiruddin Ahmed
Chowdhury, Vice President Mr. Fakhor Uddin Ali Ahmed and the Directors - Mr.
Al Maruf Khan, Mr. Bijan Chakroborty, Mr. A. S. M. Shahidullah, Mr. Waliur Rahman
Bhuiyan, Dr. A. Majeed Khan & Prof. Abu Ahmed. Mr. A. B. Siddique, Chief
Executive Officer of the Exchange was also present in the meeting.
AKM Shahroze Alam
Deputy Manager
Corporate Development
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