DSE shareholders to get six months from the date of SRO issuance
Reduction of capital gain tax
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The shareholders of Dhaka Stock Exchange (DSE) have been informed of the procedure of investing their funds, received from Chinese consortium, in the capital market.
The DSE Brokers Association of Bangladesh (DBA) on Wednesday explained the investment procedure at a meeting held at the DSE office in the capital.
In September last, the DSE shareholders received Tk 9.62 billion from its Chinese strategic partner by selling the exchange's 25 per cent stake.
The government has reduced the capital gain tax to 5.0 per cent from 15 per cent on the funds with a condition of investing it in the stock market.
After the Wednesday's meeting, held with the DSE shareholders, the DBA president Mostaque Ahmed Sadeque said their shareholders will have to invest the fund in listed securities to avail the tax benefit.
"The shareholders will have to invest their funds opening separate bank and BO (beneficiary owner's) accounts," DBA president Mr. Sadeque told the FE.
He said the DSE shareholders will get six months from the date of issuing a statutory regulatory order (SRO) on reduction of capital gain tax by the revenue board.
"The shareholders will have to pay 15 per cent tax on capital gain if they are unwilling to invest the fund received from Chinese consortium," DBA president said.
The market intermediaries said the capital market would get a good support from the investments to be made by the DSE shareholders.
Former DSE president Rakibur Rahman, DSE director Minhaz Mannan Emon, DSE managing director K. A. M. Majedur Rahman, among others, were present at Wednesday's meeting.