The DSE Brokers Association of Bangladesh (DBA) has urged Bangladesh Bank to raise the ceiling of its special fund facility for each scheduled bank to Tk 3 billion from the existing Tk 2 billion and extend the facility for another five years until November 30, 2031.
The DBA made the proposal in a formal letter submitted to Bangladesh Bank Governor Mostaqur Rahman, FCMA, on Tuesday. A copy of the letter was also sent to Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan, according to a press release.
The association said the special fund facility introduced by the central bank had played a positive role in enhancing institutional investment capacity, improving market liquidity and stability, and boosting investor confidence.
Currently, each scheduled bank is allowed to form a special fund of up to Tk 2 billion for investment in the capital market. The existing facility is scheduled to expire on November 30 this year.
The DBA said the facility should not be withdrawn amid the prevailing liquidity crunch in the capital market and heightened global uncertainty arising from ongoing tensions in the Middle East.
Instead, the facility should be strengthened to provide further support to the market, it said.
The association proposed raising the fund ceiling for each scheduled bank to Tk 3 billion and extending the facility for five more years, from December 1, 2026 to November 30, 2031.
According to the DBA, extending and enhancing the facility would help increase institutional investment, market liquidity and depth, and investor confidence.
It would also contribute to the long-term and sustainable development of the country's capital market, the association said.
The DBA expressed hope that Bangladesh Bank would take necessary steps to raise the special fund limit to Tk 3 billion and extend the facility until November 30, 2031, considering the current condition of the capital market and the broader economic interests of the country.
The association also reaffirmed its commitment to working in coordination with Bangladesh Bank and other relevant regulatory bodies to implement the government's development initiatives for the capital market and provide necessary support.
Financial Mirror/AH
