Stocks
Proposal to be Offered to Withdraw Double Taxation on Dividends
The Planning Minister, M.A. Mannan, has stated that in order to curb the dependency on interest income in the stock market, the government is considering adjustments in the corporate tax rate for listed and non-listed companies and making all types of bond markets completely tax-free. These proposals are aimed at budgetary considerations to increase revenue and ensure a more robust and free bond market.
On Sunday, June 4th, a discussion titled “Discussion on Budget: Perspective of the Stock Market” was held, organized jointly by the Bangladesh Merchant Bankers Association (BMBA) and the Capital Market Journalist Forum (CMJF). The event saw the presence of esteemed individuals such as Professor Dr. Hafiz Muhammad Hasan Babu, Chairman of the Dhaka Stock Exchange (DSE), Asif Ibrahim, Chairman of the Chittagong Stock Exchange (CSE), Richard De Rosario, President of the DSE Brokers’ Association (DBA), and Md. Sayadur Rahman, President of the BMBA.
During the event, the Planning Minister emphasized that the country is on the path of economic development. Although the stock market might not have received significant attention in our country yet, its importance is gradually increasing.
He stated that it is appropriate for multinational companies to be listed on the stock market. I had expressed this view when I was the Finance Minister. However, I wonder why these companies have not been listed.
Regarding advance income tax, he mentioned that it should be abolished, just like military laws. It is advisable to repeal this law.
President of the Bangladesh Merchant Bankers’ Association (BMBA), Mr. Sayadur Rahman, stated that the country’s economy is progressing. However, he emphasized that economic stability cannot solely rely on banking. The stock market should play a crucial role in long-term investment.
He proposed that both listed and non-listed companies should be subject to a 15% tax on profits. The dual tax system needs to be abolished, considering the tax as a final charge on dividend income sources. By removing the dual tax system, it will encourage long-term investment by taxing only the company’s income.
Richard De Rosario, President of the Dhaka Stock Exchange Brokers’ Association (DBA), expressed the need to focus on small-scale companies in the country and foster new entrepreneurs. In this regard, the stock market can play a vital role. The absence of significant measures related to the stock market in the budget is deeply disappointing.
In his claim to increase the tax on profits, he stated that listed companies have responsibilities in various aspects. They must be accountable in stock exchanges, the Bangladesh Securities and Exchange Commission (BSEC), and many other areas. Being listed improves transparency. As a result, many companies that are currently reluctant to be listed will eventually choose to do so, benefiting the government.
Asif Ibrahim, Chairman of the Chittagong Stock Exchange (CSE), stated that a significant portion of the country’s industrial investment has been channeled through banks so far. However, it would have been more appropriate if it had been done through the stock market. Unless a space for long-term investment is created through the stock market, the country’s economy can never achieve stability. Additionally, the importance of the bond market needs to be enhanced for long-term investments. In this regard, all types of bonds should be made tax-free, similar to zero-coupon bonds.
Dr. Hafiz M. Hasan Babu, Chairman of the BSEC, stated that in major economies around the world, the stock market is considered a key driving force for the economy. However, in our country, it is being neglected. There is negligence towards the stock market. I firmly believe that neglecting the stock market will not be possible, and it will continue to exist. Because it involves the people at the grassroots level of the country, and it holds the future of the economy.
CMJF President Ziaur Rahman presided over the program moderated by CMJF General Secretary Abu Ali.
Major General Mohammad Quamruzzaman (retd) has stepped down from his role as an independent director of the board of the Dhaka Stock Exchange, citing personal reasons.
He also served as a member of the DSE’s Nomination and Remuneration Committee (NRC).
Quamruzzaman was appointed to the DSE board on 1 September 2024, following the fall of the Awami League-led government. After serving for nearly one year and nine months, he submitted his resignation on Saturday (24 May).
Speaking to Quamruzzaman confirmed his resignation, saying, “Yes, I have resigned as an independent director for personal reasons.”
Md Shafiqur Rahman, Deputy General Manager of Public Relations and Publications at the DSE, said Quamruzzaman submitted a resignation letter mentioning personal reasons behind his decision.
“The DSE board will now take a decision regarding the resignation,” Shafiqur Rahman said.
He also indicated that Quamruzzaman may be planning to join another company, which could have influenced his decision to resign.
Earlier, another independent director of the DSE board, Shahnaz Sultana, also resigned from her position. She was likewise a member of the NRC.
According to the DSE annual report, Shahnaz Sultana is the CEO and Chief Consultant of FINS Alliance Risk Advisory and Consultancy and has served as the Founder and Chairperson of the WE Global Women Foundation since 2020.
The Bangladesh Securities and Exchange Commission (BSEC) has today approved appointment of Ms. Nuzhat Anwar as the new Managing Director of Dhaka Stock Exchange PLC. (DSE).
Ms. Nuzhat Anwar brings over two decades of experience in financial markets, banking, and development finance. Prior to her appointment, she worked at the International Finance Corporation (IFC), the private sector arm of the World Bank Group, where she held multiple senior leadership roles across Africa and South Asia. Her positions included Resident Representative for Liberia and Sierra Leone, Senior Country Officer for Bangladesh covering Bangladesh, Bhutan, and Nepal, and acting Cluster Manager during the COVID-19 pandemic and the subsequent transition period.
Ms. Anwar also served as an IFC Country Officer in Botswana and Namibia, where she played a key role in establishing IFC’s presence in Gaborone and advancing a sustainable investment program, including IFC’s first investment in Botswana. She offers deep expertise in capital management, treasury and liquidity, transaction services, portfolio optimization, and market advocacy. Earlier in her career, she spent 16 years with Citibank Bangladesh and Standard Chartered Bank Bangladesh in various senior management roles.
Ms. Anwar holds a Master’s degree in Commerce (Finance) from the University of Dhaka.
On her appointment as the Managing Director of DSE, the Chairman of the Board of DSE Mr. Mominul Islam said, “We are pleased to receive the approval of BSEC for appointment of Ms. Anwar as the new Managing Director. Over the last one year the NRC and Board of have worked hard to recruit a competent leader as the MD of DSE. We are confident that Ms. Anwar, with her excellent leadership trait, vast experience in the financial sector in home and abroad and deep passion for transformation in the Capital Market of the Country, is the right candidate to lead DSE in the days ahead. Now, we will complete the internal processes to onboard Ms. Anwar at soonest.”
Dhaka Stock Market DSE, Bourse on the second working day of the week, 30th September, ended with a negative performance in Indices and a hike in Turnover from the previous working session. This information is known from DSE sources.
503 crore 90 lakh taka shares were traded on this day. 22 crore 58 lakh more tradings were done in DSE today compared to the previous workday, 29th September, Shares worth Tk 481 crores 31 lakh shares were traded last time, Sunday.
The benchmark DSEX lost 33.61 points or 5,624 The Shariah-based index DSES dropped 7.36 point or 1,263 and the blue-chip index DS30 decreased by 9.57 points or 2,053.
Of the issues traded, 72 advanced, 299 declined and 25 remained unchanged.
Shahjibazar Power Company Limited ranked top gainer on DSE, the share price increased by Tk 4.00 paisa or 9.76 percent. On this day, the share was last traded at Tk 45.00 paisa.
Dhaka Electric Supply Company Limited ranked top loser on the DSE, the share price dropped by Tk 1.80 paisa or 7.56 percent. On this day, the share was last traded at Tk 22.00 paisa.
DSE topped on trade is Pragati Life Insurance Limited 25 crore 35 lakh takas of company shares have been traded.
A total of 27 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 50 lakh 42 thousand 956 shares of the companies were traded. The financial value of which is 65 crore 60 lakh taka
