Stocks
Black Money Can Be Legally Invested in Capital Markets: Budget 2024-25
Finance Minister Abul Hasan Mahmood Ali has introduced the proposed national budget for the fiscal year 2024-25, which includes a provision allowing investment of undeclared money, or “black money,” into the capital markets without any questions asked. This initiative aims to bolster investment activity and liquidity in the stock market.
During the budget presentation on Thursday in the National Parliament, presided over by Speaker Shirin Sharmin Chaudhury and in the presence of Prime Minister Sheikh Hasina, the Finance Minister outlined this proposal as a part of the broader budgetary framework.
Key Proposals for the Capital Market
Investment of Undeclared Money: The budget proposes that individuals can invest undeclared money into the stock market without facing any inquiries. This measure is expected to attract more capital into the market, potentially enhancing market stability and growth.
Capital Gains Tax on Share Sales: Investors making profits from share sales will now be subject to taxes if the profit exceeds Tk 50 lakh. A 15% tax on capital gains over this threshold has been proposed. This aims to ensure a fair contribution from high-earning investors to the national revenue.
Historical Tax Exemptions: Previously, in 2015, investors were granted tax exemptions on profits from the sale of stocks, mutual funds, bonds, and debentures. These exemptions were part of efforts to stimulate investment and trading activities in the capital markets.
Increased Tax for Sponsors and Directors: The proposed budget increases the tax rate on capital gains from share transfers for sponsors and directors of listed companies from 5% to 10%. This move is intended to enhance tax revenues from high-value transactions and ensure equity in the tax system.
Exemptions for Family Transfers: No tax will be imposed on the transfer of shares between parents and children or between spouses when such transfers are made as gifts. This provision supports familial financial planning without additional tax burdens.
One of the Listed companies, National Polymer Limited has recommended 10.50% Cash Dividend for the year ended June 30, 2024.
It has reported Consolidated EPS of Tk 2.27 paisa, and Consolidated NAV per share of Tk 30.63 for the year ended March 31, 2024.
The Annual General Meeting (AGM) of the company will be held on December 18, through the digital platform. The record date for this has been fixed at October 22.
The Company also discloses its financial reports for the second quarter, (April – June 24).
As per the company’s consolidated life revenue account for April to June 2024, the excess of total income over total expenses, including claims (surplus), stood at Tk 1,394.24 million. This marks a significant increase from the surplus of Tk 823.68 million during the same period in 2023.
For the first half of 2024, from January to June, the company reported a surplus of Tk 2,177.57 million, compared to Tk 1,290.39 million in the corresponding period of the previous year.
Additionally, the Life Insurance Fund balance as of June 30, 2024, reached Tk 55,188.62 million, showing a net increase of Tk 5,892.25 million from Tk 49,296.37 million on June 30, 2023.
One of the Listed companies, Beacon Pharmaceuticals PLC has recommended 20% Cash dividend and 10% Cash Dividend to Sponsor Shareholder and Directors for the year ended June 30, 2024.
It has reported EPS of Tk 2.26 paisa, and NAV per share of Tk. 26.37 for the year ended June 30, 2024.
The Annual General Meeting (AGM) of the company will be held on December 23, through the digital platform. The record date for this has been fixed at October 27.
The Bangladesh Securities and Exchange Commission (BSEC) has removed three audit firms from its panel for their failure to secure enlistment with the Financial Reporting Council (FRC), according to a notice issued today.
The firms—A Hoque & Company, FAMES & R, and SK Barua & Company Chartered Accountants—were delisted following the FRC’s request. In December last year, the FRC published a list of enlisted audit firms and subsequently, in February, requested the BSEC to remove any firms that were not included on that list.
BSEC regulations mandate that financial statements signed by auditors outside its approved panel will not be accepted. With the removal of these three firms, the total number of audit firms on the BSEC panel has been reduced from 48 to 45.
Sources from the FRC revealed that 15-20 audit firms failed to secure enlistment last year, and approximately 45 chartered accountants are currently under restrictions imposed by the Institute of Chartered Accountants.
Although the delisted firms can no longer audit issuer companies or listed securities, they are allowed to complete audit and assurance services that were initiated before their removal, the BSEC clarified.
