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Mega incentive to lure investors to Tk 50b BF
Nazmul Ahsan
The government has planned to allow investment of undisclosed money in the Tk 50 billion Bangladesh Fund to make it attractive to individual and institutional investors, officials said Tuesday.
The incentive will be a part of a package the finance ministry is going to declare soon to boost confidence in the stock market and make sure the proposed BF gets good response from three million small investors.
Eight state-owned financial institutions including Investment Corporation of Bangladesh (ICB), five commercial banks, and two insurers announced the creation of the BF on March 6.
Finance ministry officials fine-tuning the details of the Fund said the government would offer some out-of-box benefits and tax exemption facility to make the open-ended mutual fund investor-friendly.
"It is the largest mutual fund the government-owned ICB is launching. We are going to offer lucrative incentives to investors willing to buy units of the fund," said an official.
He said up to 10 per cent stakes of the state-owned companies -- including petroleum companies -- to be offloaded this year will be reserved for the mega fund.
"Stakes in private sector Initial Public Offering (IPO) may also be reserved for the fund. These measures will add financial muscles to the BF," he said.
"Announcement of the package will be made soon. It will definitely bolster market sentiment," he added.
Officials said individual and institutional investors can be able to whiten their undisclosed savings by investing the same in the fund after paying 10 per cent flat tax rate.
The capital market made a steady and gradual turnaround after the authorities announced creation of the BF. The Dhaka Stock Exchange has gained around 10 per cent in the past two weeks alone.
Five state-owned commercial banks -- Sonali, Rupali, Janata, Agrani and Bangladesh Development Bank Limited (BDBL) -- and two state-owned insurers, Sadharan Bima Corporation and Jibon Bima Corporation, are joint sponsors of the fund to be managed by the ICB.
The authorities have said of the Tk 50 billion, half will be invested in the stocks of listed companies and the rest will be invested in money market in line with regulatory permission.
Officials in the finance ministry said they are finalising the package on the basis of consultation with the ICB officials.
The government has planned to allow investment of undisclosed money in the Tk 50 billion Bangladesh Fund to make it attractive to individual and institutional investors, officials said Tuesday.
The incentive will be a part of a package the finance ministry is going to declare soon to boost confidence in the stock market and make sure the proposed BF gets good response from three million small investors.
Eight state-owned financial institutions including Investment Corporation of Bangladesh (ICB), five commercial banks, and two insurers announced the creation of the BF on March 6.
Finance ministry officials fine-tuning the details of the Fund said the government would offer some out-of-box benefits and tax exemption facility to make the open-ended mutual fund investor-friendly.
"It is the largest mutual fund the government-owned ICB is launching. We are going to offer lucrative incentives to investors willing to buy units of the fund," said an official.
He said up to 10 per cent stakes of the state-owned companies -- including petroleum companies -- to be offloaded this year will be reserved for the mega fund.
"Stakes in private sector Initial Public Offering (IPO) may also be reserved for the fund. These measures will add financial muscles to the BF," he said.
"Announcement of the package will be made soon. It will definitely bolster market sentiment," he added.
Officials said individual and institutional investors can be able to whiten their undisclosed savings by investing the same in the fund after paying 10 per cent flat tax rate.
The capital market made a steady and gradual turnaround after the authorities announced creation of the BF. The Dhaka Stock Exchange has gained around 10 per cent in the past two weeks alone.
Five state-owned commercial banks -- Sonali, Rupali, Janata, Agrani and Bangladesh Development Bank Limited (BDBL) -- and two state-owned insurers, Sadharan Bima Corporation and Jibon Bima Corporation, are joint sponsors of the fund to be managed by the ICB.
The authorities have said of the Tk 50 billion, half will be invested in the stocks of listed companies and the rest will be invested in money market in line with regulatory permission.
Officials in the finance ministry said they are finalising the package on the basis of consultation with the ICB officials.
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