Published: Thursday, March 14, 2013

Bank credit triples for stock dealers

Stock dealers will now be able to receive credit from banks triple the existing ceiling of Tk 1 crore.
The central bank made the move to improve the liquidity flow in the ailing stockmarket.
The stock dealers will be allowed to invest the amount in the secondary market through their own portfolio, according to a Bangladesh Bank notice issued yesterday.
They can also disburse 70 percent of the amount to their clients to facilitate purchase of A-category shares, while 60 percent for B-category ones.
The move came after a meeting between the central bank and a stockmarket coordination committee at the BB headquarters.
Recently, the Dhaka Stock Exchange requested the central bank to raise the loan limit for stock dealers to give a boost to their buying capacity and help increase the trading volume in the secondary market.
The coordination committee, which was formed by the DSE in January, will sit today with Association of Bankers, Bangladesh Ltd, a platform of banks’ chief executives, to discuss the current market situation.
Another such meeting is scheduled for March 20 with Insurance Development and Regulatory Authority.
In another notification, the BB asked all scheduled banks to submit information on their existing large-scale credit through the central bank’s web portal within April 4.
The central bank yesterday also forwarded a notice, issued by the National Board of Revenue on February 26, to all commercial banks.
According to the notice, the commercial banks will need to mention VAT registration number, bill of loading/airway bill, invoice, packing list and shipping documents, apart from name and address of an importer, while opening letters of credit.