Written by The Banking Post
Bangladesh Bank has set a target to expand the country’s capital market by 10.75 per cent by FY29, aiming to reduce the private sector’s dependence on bank borrowing and strengthen the role of the capital market in financing the economy.
The roadmap was unveiled during a meeting between Bangladesh Bank Governor and a delegation of the Chittagong Stock Exchange (CSE), led by its Chairman AKM Habibur Rahman, at the central bank headquarters in Dhaka, according to a press release.
With the current market capitalisation standing at Tk6.98 trillion, the central bank plans to add Tk750 billion over the next three fiscal years. The target includes an increase of Tk200 billion in FY27, Tk250 billion in FY28 and Tk300 billion in FY29.
As part of the strategy, Bangladesh Bank has also introduced measures to make the market more attractive to foreign portfolio investors.
Under the revised rules, proceeds from the sale of shares and securities will be credited directly to investors’ Non-Resident Investor’s Taka Accounts (NITA). Authorized dealer banks will deduct and deposit any applicable capital gains tax to the government, eliminating the need for investors to complete separate tax procedures.
The central bank said the reform will align foreign portfolio investment transactions with the domestic settlement process, reducing compliance costs and removing a longstanding barrier to greater foreign participation in Bangladesh’s capital market.
