SEC (Securities and Exchange Commission) has finally disclosed the long waited 21-point bailout package for share markets on Wednesday
The package includes different plans short, middle and long. These will be implemented within six months. This was disclosed by Prof M Khairul Hossain, the SEC chairman, at a press briefing at his office.
The short-term plans:
the banks investment in their subsidiary will not be considered as the banks’ exposure to capital market; long-term equity investment of a bank will not be counted in the bank’s exposure limit; the deadline for lowering the exposure of the banks that have exposure beyond the permissible limit has been extended to December 2013; withdrawal of 10 percent tax on profit made by the foreign investors and non-resident Bangladeshis to encourage foreign investment.
The mid-term plans:
They will allow investment advisory service and equity research publication by the professional stockbrokers and market experts.
The long-term measures include formulating Financial Reporting Act, modifying insider trading rules and small investors’ protection law, and demutualization of the stock exchanges.