The Bangladesh Securities and Exchange Commission (BSEC) has proposed to the Financial Institutions Division (FID) of the Ministry of Finance to increase the size and tenure of the Tk 200 crore special fund allocated for banks to invest in the capital market. The commission has requested the fund size be raised to Tk 300 crore, with its tenure extended for an additional five years beyond February 2025.

This information was disclosed in a press release signed by BSEC Executive Director and Spokesperson Md. Rezaul Karim on Wednesday, December 4. According to the release, the Secretary of the Financial Institutions Division, Nazma Mobarak, along with senior officials, visited the BSEC office in Agargaon, Dhaka, for a meeting.

During the meeting, attended by key figures from both the Financial Institutions Division and BSEC, Executive Director Md. Rezaul Karim delivered a presentation titled "The Role and Activities of the Bangladesh Securities and Exchange Commission (BSEC)" and "The Current State of Bangladesh’s Capital Market: Challenges, Opportunities, and Strategies." The presentation covered BSEC’s vision, mission, key activities, structural framework, and ongoing operations. It also highlighted the current state of the capital market, comparative insights with other Southeast Asian markets, and strategic reforms initiated by the commission.

Key topics of discussion included addressing the issue of negative equity, encouraging the listing of high-performing state-owned enterprises, and enhancing the special fund size and tenure for banks to inject liquidity into the market. The BSEC emphasized the necessity of coordinated policies and financial mechanisms for the development of the capital market, vital to boosting the nation's economy and banking sector.

Nazma Mobarak, Secretary of the Financial Institutions Division, stressed the importance of creating an investor-friendly environment in the capital market. She highlighted the need for collaborative efforts to overcome existing market challenges and streamline policies for sustainable growth.

BSEC Chairman Khandaker Rashid Maksud reiterated the commission's commitment to addressing market crises and unlocking its potential. He sought support from the Ministry of Finance and the Financial Institutions Division, emphasizing that a robust capital market is crucial for the country's economic development.

The meeting concluded with acknowledgments of the proactive stance taken by the Financial Institutions Division and discussions on future plans, including investor awareness initiatives and stringent measures against market irregularities.