Bangladesh Govt. took a number measures to encourage foreign and local investors to invest in the securities market. These measures include:
- Allowing foreign investors to participate in IPO and right issue without any regulatory restrictions.
- Withdrawal of all regulatory restrictions on international portfolio investors for investing in the secondary securities market.
- Withdrawal of ceiling on holding of international portfolio investors.
- Previous lock-in for one year for foreign investors in private placement of IPO is now withdrawn
- Tax payment on dividend has been withdrawn. ie. Income from dividend is totally tax-free for investors.
- A gradual decline in Bank Rate resulting in fall in interest rate in bank deposits which is acting as an incentive to invest in securities market.
- Investment in Primary and Secondary Market share is eligible for Investment Allowance.
This page is last updated on 27 October, 2003