Dhaka Stock Exchange Brokers Association of Bangladesh (DBA) has urged Bangladesh Bank to raise the ceiling of its special fund facility for the capital market from Tk 200 crore to Tk 300 crore per scheduled bank and extend its tenure by another five years, until November 30, 2031.

The brokers' body said the move is needed to tackle the prevailing liquidity crisis in the stock market, boost institutional investment and strengthen investor confidence.

In a statement issued Wednesday, the DBA said it submitted a formal letter on Tuesday to Bangladesh Bank Governor Mostaqur Rahman.

A copy of the letter was also sent to Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan.

According to the DBA, the special fund facility introduced by Bangladesh Bank for investment in and development of the capital market has played a positive role in enhancing institutional investment capacity, improving market liquidity and stability, and restoring investor confidence.

At present, each scheduled bank can create a special fund of up to Tk 200 crore.

However, the current tenure of the facility is set to expire on November 30, 2026.

The DBA said that, given the existing liquidity crisis in the capital market and global uncertainty stemming from ongoing tensions in the Middle East, the facility should be strengthened rather than withdrawn.

The DBA said raising the limit and extending the tenure would increase institutional investment, improve market liquidity and depth, and bolster investor confidence.

It would also play an important role in the long-term and sustainable development of the capital market, the association added.

The DBA expressed hope that Bangladesh Bank would take the necessary steps to raise the ceiling to Tk 300 crore and extend the tenure until November 30, 2031, considering the current market situation and broader national economic interests.

The association also reaffirmed its commitment to work in coordination with Bangladesh Bank and other relevant regulators, as it has in the past, to implement the government's capital market development initiatives and to extend necessary cooperation.