Govt cuts lock-in period for investing untaxed money in stocks

Lock-in period for investments reduced

The government has reduced the lock-in period for monetary investments in the capital market from undisclosed sources, to just one year from three years as proposed earlier.

Parliament on Monday passed the Finance Bill 2020 with some changes regarding the capital markets.

On June 11, Finance Minister AHM Mustafa Kamal in parliament proposed a Tk568,000 crore national budget for the 2020-21 fiscal year.

The proposed budget allowed investment of money from undisclosed sources in the stock market, on condition that the investment is made with a 10% tax and is locked in for three years. Capital market stakeholders have been demanding the withdrawal of the lock-in mechanism.Report:Dhaka Tribune