SEC hopes for capital market friendly budget

Securities and Exchange Commission chairman M Khairul Hossain on Saturday said the commission hoped that the government would include some 'positive provisions' in the final budget for the next fiscal year and withdraw the proposed tax hike on brokers' commission.




'Considering the current market scenario, the Securities and Exchange Commission has recommended that the final budget should include some incentives [for the capital market],' Khairul told a meeting on 'restoring investors' confidence' organised by the Chittagong Stock Exchange in its office in the port city.
'We have requested for a capital market-friendly budget as the market has been depressed for a long time now,' he said.
Asked about the possible positive decisions after the seminar, the
SEC chief told New Age, 'We have requested for withdrawal of the proposed tax increment on brokerage income and reinstate the tax rebate for investors in the final budget.'
Finance minister AMA Muhith in his proposed budget placed in the parliament on June 9 increased the tax on brokers' commission to 0.10 per cent from 0.05
per cent and scrapped
the 10 per cent tax rebate on share market investment.
'Not only the general investors, the policymakers also don't understand yet the importance of the capital market for the country's economic growth,' Khairul told the meeting chaired by CSE president Fokhor Uddin Ali Ahmed.
SEC member Helal Uddin Nizami said, 'At present, reforming the necessary laws is the priority of the commission and we are considering demutualisation of the bourses.'
He, however, criticised the demutualisation roadmap proposed by the Dhaka Stock Exchange. 'The timeframe proposed by the DSE seems unreasonably long and shows their reluctance about the move.'
SEC member Arif Khan said, 'After observing the last debacle, we can say that chartered accountants should be held as the prime responsible party for overvalued scrip.'
'They are the ones who certify a company's
financial statements,
even the faulty ones,
and millions of people invest money from their trust in those statements,' he said.
Source : New Age

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