The government has formed a high-powered committee to formulate a policy guideline regarding venture capital and investment eco-system in the country.
The 10-member body is asked to prepare the guideline on venture capital and investment within the next six weeks.
The Ministry of Finance (MoF) has issued a gazette notification, dated May 24, 2018, elaborating the Terms of Reference (ToR) of the committee.
It comprises of representatives from the Bangladesh Investment Development Authority (BIDA), the Bangladesh Securities and Exchange Commission (BSEC), the Bangladesh Bank (BB), and the Insurance Development and Regulatory Authority (IDRA), among others.
Besides, representatives from the Sonali Bank Limited, the Association of Bankers, Bangladesh (ABB), the Moslin Capital Limited, the BD Venture Limited, and the Financial Institutions Division (FID) are also included in it.
The committee, led by FID Additional Secretary Arijit Chowdhury, will formulate a specific framework on formation and use of venture capital.
It will also prepare a work-plan for the banks to support the small entrepreneurs.
The committee will also scrutinise the possibilities of forming an 'Impact Investment Fund' under BIDA for the small entrepreneurs, especially for the women entrepreneurs. The fund will be formed to finance the small entrepreneurs at a low cost.
Besides, the committee will communicate with different foreign venture capital firms to facilitate joint venture investment.
It will also launch campaigns to make venture capital popular across the country.
Venture capital is financing that investors provide to start-up companies and small businesses that are believed to have long-term growth potentials.
Venture capital generally comes from well-off investors, investment banks and any other financial institutions.
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