A director of Dhaka Stock Exchange (DSE) has demanded financial package along with waiving tax at source from brokerage commission.
DSE director Minhaz Mannan Emon made the demand as the market recently has witnessed plunges amid caronavirus pandemic.
He said presently the bourse has no income as the capital market remained closed along with the ongoing lockdown announced to contain the spread of COVID-19 since March 26 last.
"A financial support is imperative for the capital market. The government can provide especially the merchant banks with financial support at lower interest at this critical juncture ," Mr. Emon said.
He said the market operators have to pay advance income tax (AIT) at a rate of 0.05 per cent on the commission realised from transactions of listed securities.
"The government should waive this AIT at this moment," Emon said.
He has also demanded stimulus package for brokers, asset management companies and other market operators.
"The government's fund, which will be disbursed to market operators at minimum interest rate, will be refunded when the market will be stable," the DSE director Mr. Emon said.
He said the government should also think about the interest of foreign portfolio investors when the capital market's operations will be restored.
"The closure of the capital market is very much unexpected to us. At the same time, we have to realise the ongoing situation continued across the world," Emon said.
He said there is a difference between the capital markets of Bangladesh and abroad.
"The trading platforms of other countries are completely automated and greater parts of the transactions are executed through mobiles," said Emon, adding that such trading system is yet to be prepared here.
