Muhammad Ayub Ali :
The forthcoming FY2025-26 national budget is expected to incorporate several key proposals from the Dhaka Stock Exchange (DSE), reflecting a strong alignment with the capital market’s reform agenda.
These measures-ranging from tax incentives to investor protection-aim to rebuild confidence, deepen market participation, and stimulate long-term investment in both equity and debt markets.
Talking to the The New Nation, DSE Chairman Mominul Islam stated, “We are hoping for an investor-friendly budget that will revitalize the market and restore much-needed confidence.”
Strengthening Investor Protection A central element of DSE’s proposal is allowing brokers and dealers to utilize interest from Consolidated Customer Accounts (CCA), provided that 25percent of it is deposited into the Investors’ Protection Fund (IPF).
This fund would compensate investors affected by failed brokerages like Moshiur Securities, Tamha Securities, and Banco Securities.
This initiative is already partly underway. The Bangladesh Securities and Exchange Commission (BSEC) has implemented the rule, allowing brokers to retain 75percent of CCA interest while directing the remaining 25percent to the IPF. “This is a very positive step,” said Islam.
In addition, the BSEC has reduced the annual BO (Beneficiary Owner) account maintenance fee from Tk450 to Tk150-a meaningful relief for small investors.
Easing the Burden of Negative Equity DSE is pushing for a complete waiver of negative equity in margin accounts-where loan obligations exceed the market value of an investor’s portfolio.
The plan proposes a six-year period for brokers and merchant banks to write off these losses gradually, providing breathing room for both intermediaries and clients.
The DSE’s proposed budget calls for major tax reforms, including reducing Advance Income Tax from Tk50 to Tk15 per Tk100,000 and widening the tax gap between listed and unlisted companies from 5percent to 10percent to boost IPOs.
It also recommends capping brokerage commissions at 0.35percent and granting tax exemptions on income from Asset-Backed Securities and Zero Coupon Bonds to attract long-term investors.
Strategically, the DSE urges the listing of privatized state-owned enterprises and MNCs like Unilever and Novartis within a set timeframe.
It also suggests securitizing toll revenues, developing government land through REITs, and encouraging SOEs like BAPEX to raise capital via listed bonds.
