The government has planned to create a Tk 850-crore revolving fund for five years to invest it in the capital market and utilize it during any crisis to keep the market stable.
Sources at the finance ministry said the Bangladesh Security and Exchange Commission (BSEC) sent a proposal to the financial institution division this week.
“The proposal will be placed before the higher authorities for the approval,” said an official adding that the size of the revolving fund will be about Tk 850 crore and the term will be five years.
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“If there’s any crisis in the capital market, money can be used from this fund. Investment Corporation of Bangladesh (ICB) will take care of the fund,” the official said, wishing anonymity.
In 2010, the capital market suffered a setback and went through a depression as shares of most of the listed companies suffered record losses in their prices and the capital market took a decade to bounce back.