Business Desk :
Bangladesh Securities and Exchange Commission (BSEC) requested the authorities of Sonali, Rupali, Janata and Agrani banks to increase investment in the stock market.
The BSEC sent letters to the managing directors of the four state-run banks on Tuesday requesting to take necessary steps to make a fresh investment through their portfolio.
It also requested to provide information regarding investments from the banks’ portfolio as of April 18, 2022, as early as possible.
It is expected that institutional investors should dominate trading activities instead of retail ones to improve the stability of the country’s capital market, the BSEC said.
However, the investor-based capital market in Bangladesh is mostly dominated by retail investors, whose size is around 80 per cent of total investors, it said.
The banks can invest funds by taking loans from the Bangladesh Bank as it approved banks to form a Tk 200 crore special fund to invest in the market which will not be included in the calculation of the capital market exposure limit.
