Bangladesh News Desk: Market regulator Bangladesh Securities and Exchange Commission (BSEC) has sent letters to the chiefs of 61 banks, requesting the latter to increase their investment in share markets.
BSEC executive director and spokesperson Mohamamd Rezaul Karim made the call on behalf of the regulator in two separate letters sent on Wednesday.
The BSCE sent a letter to the chiefs of 33 banks calling the latter to invest in the share markets within the legal jurisdiction. In another letter, the market regulator requested the chiefs of 28 banks to form a special fund and invest in the share market.
According to BSEC sources, Bangladesh Bank allowed the formation of a Tk 2 billion (200 crore) special fund for investing in the stock market. This fund is kept out of the legal jurisdiction of the banks for investment in the market. Many banks formed the fund but did not make expected investment in share markets.
So, the central bank requested 33 banks to make more investment in the stock markets within their legal jurisdiction and asked the remaining 28 banks to form the special fund soon.
BSEC said banks play the role of the institutional investors in the country’s stock market and there is no alternative to increased investment of banks to the market.
That is why the BSEC called the banks to step forward in order to increase market transaction and institutional investors’ participation.
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