The banks have been asked to inform the securities regulator by seven working days

The Bangladesh Securities and Exchange Commission (BSEC) has sought to know about the special fund creation and investment by 30 private banks and four state-owned banks in the stock market.

The banks have been asked to inform the securities regulator by seven working days.

The regulator through a letter on Monday directed the banks’ managing directors to send their invested amount from the funds in capital markets till June 28, 2020.

Earlier on February 10, the Bangladesh Bank (BB) instructed scheduled banks to form their special funds worthTk200 crore each to invest in the stock markets, as part of the government attempt to boost the sagging capital market.

The fund could be formed by banks’ own sources or borrowing from the central bank through repo of Treasury bills or bonds, the BB said, issuing a circular then.

Brokerage houses, merchant banks, and stock market subsidiaries of banks and financial institutions would get access to the fund through the scheduled banks, the BB circular elaborated.

Scheduled banks can borrow from the BB at a 5% interest rate while brokerage houses, merchant banks, and stock market subsidiaries of banks and financial institutions can also borrow from the scheduled banks at 7%.

The fund will remain valid until February 9, 2025.

Meanwhile, a top BB official told Dhaka Tribune that the 17 banks, out of 60 (listed and non-listed), formed their funds as of Tuesday in compliance with the BB instruction.

The banks are– Sonali Bank, Janata Bank, Rupali Bank, United Commercial Bank, Shahjalal Islami Bank, The City Bank, Islami Bank Bangladesh, Social Islami Bank, Pubali Bank, Exim Bank, Dhaka Bank, NCC Bank, AB Bank, Mercantile Bank, Mutual Trust Bank, Southeast Bank and NRBC Bank.Report:Dhakatribune