DSE, brokers hail ‘capital market-friendly’ budget

The Dhaka Stock Exchange (DSE) and the DSE Brokers Association of Bangladesh (DBA) have welcomed the national budget presented by the finance adviser on Monday, deeming it highly favourable for the country's capital market. 

DSE Chairman Mominul Islam expressed gratitude to the Finance Adviser Salehudddin Ahmed for incorporating supportive policies aimed at developing Bangladesh's capital market, especially after the interim government assumed responsibility.

In a statement sent to the media on Monday night following the budget announcement, Mominul commended the government's "emphasis on establishing good governance within the capital market and restoring investor confidence."

He highlighted several key measures in the budget for the fiscal year 2025-26 that are expected to positively impact the capital market, including an increased tax rate gap between listed and unlisted companies, a reduced tax rate for merchant banks, and a decrease in withholding tax on transactions.

The Bangladesh Securities and Exchange Commission (BSEC) recently reduced the maintenance fee for investors' BO accounts from Tk450 to Tk150. Additionally, the BSEC decided to allocate 25% of the accrued interest from Consolidated Customers' Accounts to the Investors' Protection Fund, for the benefit of affected investors.

Furthermore, on 4 November 2024, the National Board of Revenue (NBR) continued to provide full tax exemption on capital gains up to Tk50 lakh for individual investors from listed companies, while reducing the tax on capital gains exceeding Tk50 lakh to 15%. 

Mominul added that they believe that these capital market-supportive policies underscore the government's strong commitment to the development of the capital market.

He also expressed optimism that the market's depth would increase through the budget's proposals to take necessary steps to include government-owned multinational companies in the capital market by reducing government shares, listing profitable government institutions, and encouraging large local private companies to list on the stock exchange through incentives.

The DSE chairman thanked the BSEC and the NBR for "these positive decisions."

He said the DSE believes that the government's positive outlook towards the capital market will pave the way for a stronger and more sustainable long-term growth of the country's developing capital market.

DSE Brokers Association praises budget

In a statement released yesterday, DSE Brokers Association of Bangladesh President Saifur Islam congratulated the finance adviser for proposing both development plans and tax benefits within the budget, aimed at the advancement and growth of the capital market.

"For many years, we have been making various recommendations to the government, including tax incentives, for the development and growth of the capital market. This budget has partially fulfilled our demands," he said.

Saifur said they believe that the implementation of these capital market-related proposals in the budget will play a significant role in the market's development and progress. This, he anticipates, will commercially benefit all stakeholders associated with the capital market, including domestic and foreign investors, issuer companies, stockbrokers, and merchant banks.

He further said the interim government has given special importance to the capital market, which is reflected in the budget. 

Saifur also conveyed his immense thanks and gratitude to Chief Adviser Muhammad Yunus for such a "pro-capital market budget."