Some 123 shareholders of Dhaka Stock Exchange (DSE) so far have received cheques against their shares sold to the Chinese consortium with a commitment of investing in the capital market.
By investing their funds in the stock market, the shareholders will avail tax cut facility announced by the government.
The shareholders who will invest their funds, received from Chinese consortium, will have to pay 5.0 per cent tax instead of 15 per cent on capital gains.
Meanwhile, the Bangladesh Securities and Exchange Commission (BSEC) issued a directive on November 13 last explaining the mode of operation and procedure of investing the shareholders' funds in the capital market.
Managing director of the prime bourse K. A. M. Majedur Rahman said the have issued cheques deducting 5.0 per cent tax from the funds of shareholders who will invest in the capital market.
"The shareholders who availed tax benefits have already started investment in the capital market," the DSE managing director told the FE.
He said the DSE issued the cheques of the shareholders, who will not invest in the market, deducting 15 per cent tax on capital gains.
Of 250 DSE shareholders, 200 so far have received cheques against their shares sold to Chinese consortium.
Of 200 shareholders, 123 have received cheques paying 5.0 per cent tax instead of 15 per cent with a commitment of investing in the capital market.
A total of 43 shareholders have received cheques without commitment of investing in the capital market. As a result, those shareholders received cheques paying 15 per cent tax on capital gains.
A total of 34 shareholders have no requirement of investing their funds in the market as their costs of acquisition of respective 25 per cent stakes are higher than the funds received from Chinese consortium.
Remaining 50 shareholders have not yet received cheques from the DSE authority.
The officials of the prime bourse said the number of shareholders willing to invest in the capital market will rise if the remaining cheques are distributed.
Mostaque Ahmed Sadeque, the president of DSE Brokers Association of Bangladesh (DBA) said some brokers have started investing their funds in the capital market.
"The brokers who have received cheques with a commitment of investing in the capital market have no chance of changing decision. So, the funds of such shareholders will be injected gradually in the market," Sadeque told the FE.
Meanwhile, the DSE has received a directive regarding the mode of operation and procedures of investing the shareholder's fund in the capital market.
The BSEC directive issued on November 23 said the DSE shareholders will have to open new BO (beneficiary owner's) accounts in its own name under the brokerage license as a new non-margin account and intimate such account ID to the DSE in due course.
The BSEC directive also reads, the DSE shareholders will also have to open the prescribed bank account exactly in the same name with the banks as per advice of DSE which shall be used exclusively for trading of the listed securities in the said account.
In September last, the DSE received Tk 9.62 billion from its Chinese strategic partner by selling the exchange's 25 per cent stake.
The government has reduced the capital gain tax to 5.0 per cent from 15 per cent on the funds with a condition of investing it in the stock market.
As per the government's assurance, the National Board of Revenue (NBR) has already issued a statutory regulatory order (SRO) on reduction of capital gain tax to be paid by DSE shareholders.
As per the SRO, the DSE shareholders will have to invest their funds in listed securities within six months of receiving cheques.
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