PM to hold quadripartite meeting to boost stock market
BI Report || BusinessInsider
Prime Minister Sheikh Hasina is expected to hold a meeting next week with the two regulatory bodies of stock markets to resolve a row over the commercial banks’ limit while investing in the capital market.
The meeting will be aimed at resolving the dispute between Bangladesh Bank and the regulator of the stock market Securities and Exchange Commission (BSEC) over the existing investment limits in the stock market, sources in the finance ministry said.
Bangladesh Bank Governor Fazle Kabir and Prof. Shibli Rubaiyat-ul-Islam, Chairman of capital market regulatory authority BSEC are likely to be attending the meeting. The secretary to the Ministry of Finance Abdur Rauf Talukder and Secretary to the Financial Institutions Division Sheikh Mohammad Salim Ullah are also expected to attend.
The stock market has been volatile for a long time with Bangladesh Bank and commercial banks tussle over the upper investment limit.
There are conflicting opinions between the two regulatory bodies-BB and BSEC over the matter.
Prior to the quadripartite meeting, the Prime Minister is likely to hold an exclusive meeting with the central bank governor, officials said.
It is learned that the Prime Minister’s meeting with the top four officials could lead to a positive decision for the stock market. In that case, the amendment of section 26 (a) of the Banking Companies Act 1991 (as amended in 2013) may be discussed.
Even, issuance of a circular by the central bank is possible by amending the incumbent conventional method of investment by the banks.
It is alleged that the banks are constantly violating investment limits as a result of abiding by the existing laws. And, that’s why fines are often imposed on them. At times the pressure of selling shares is mounted accompanied by panics.