Parliament on Monday passed the Finance Bill 2020, reducing the lock-in period to one year from the proposed three years for investing undisclosed money in the share market.
On June 11, Finance Minister AHM Mustafa Kamal tabled a national budget of Tk568,000 crore in parliament for the 2020-21 financial year.
The proposed budget allowed investment of money from undisclosed sources in the stock market on condition that the investment be made with a 10% tax and be put under a three-year lock-in period.
Following the presentation of the draft budget, stakeholders of the capital market have demanded the withdrawal of the lock-in mechanism on investing undisclosed money in the market.
Earlier, the DSE (Dhaka Stock Exchange) Brokerage Association (DBA) and the Bangladesh Merchant Bankers Association (BMBA) in separate letters to the finance minister urged a withdrawal of the lock-in period condition from the finance bill.
Both the associations had argued that the proposed opportunity to invest undisclosed money in the capital market by paying a 10% tax with a lock-in period of three years was not feasible. ♦
