The Financial Express

DSE welcomes the proposed budget

DSE welcomes the proposed budget

Dhaka Stock Exchange (DSE) has welcomed the proposed budget for fiscal year (FY) 2020-21 as 'business-friendly'.

The main bourse has expressed its gratitude to Prime Minister Sheikh Hasina and Finance Minister AHM Mustafa Kamal for announcing several positive initiatives in the proposed budget which reflects the general investors' expectations, said a DSE press release.

The prime bourse appreciated the initiatives offered for boosting investment, generating employment and addressing the impacts of Covid-19 and recovery measures from the crisis as well.

The DSE also appreciated for giving special focus on health, agriculture and food and social safety net programmes in the budget amid ongoing pandemic.

The DSE hailed some measures taken in the budget, including the development of the stock market, strengthening the bond market, reducing dependency on banks for industrialization.

The DSE also thanked the prime minister and the finance minister for allowing undisclosed money to invest in the stock market.

The people who will avail the facility to invest in securities such as stocks, mutual funds and bonds will have to pay only 10 per cent tax within 30 days of their investments without any penalty.

The proposed opportunity of investing undisclosed money will leave a positive impact in the capital market, the DSE hoped.

The government has also taken steps to develop a strong bond market in the country to provide long-term financing.

"Flourishing of the bond market in the country will open up new scopes and opportunities for financing mega projects in public and private sectors," Finance Minister AHM Mustafa Kamal said in his budget speech on Thursday.

To make the bond market attractive to the investors by abolishing the existing provision of deduction of source tax upfront on interest and discount on bonds, the finance minister has proposed to introduce the provision of TDS (tax deducted at source) at the time of payment of interest and discount on bonds to make the bond market attractive to the investors.

"These measures will increase transactions of bonds in the capital market and facilitate the flourishing of a strong bond market in the country," he hoped.

The country's capital market is one of the largest sources of the long-term financing, the DSE said.

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