Dhaka – Finance Minister AMA Muhith on Wednesday turned down an appeal of the stock brokers to provide fund for helping negative equity holders in the stock market.
“No fund will be provided to the stock market for negative equity holders,” he told a newly elected body of Dhaka Stock Exchange (DSE) Brokers Association (DBA) when its leaders met him at his ministry at the Secretariat.
According to stock market experts, those investors are negative equity holders who invested money in the stock market by taking bank loans and then lost their equity.
The stock market investors in the DSE lost about Tk 6000 crore after the latest debacle in 2010.
Newly elected president of the DBA Ahmed Rashid Dhali led the delegation while organisation’s vice president Khojista Noor also spoke on the occasion.
The Finance Minister, however, supported an idea of the BDA leaders to allow the DSE to float bonds for mobilising fund to help negative equity holders.
He said if they come up with such proposal to float bonds, then its possibility could be examined.
After the demutualisation at the DSE, the stock brokers formed the DBA as their new platform to protect their interest.
At the meeting, the BDA president said they have been facing difficulties in receiving bank loan on individual category due to ‘exposure limit’ related rules of the banks. “Banks don’t want to provide any loan to run our business showing the limitation of the rule.”
He demanded a waiver to the rule for the stock brokers.
He also briefed the Finance Minister about the measures taken by the DSE to train up investors over doing business in the capital market. -UNB
