Investment fund managers seek easier rules

Dhaka,  Tue,  26 September 2017
Published : 25 Aug 2017, 00:56:30
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Investment fund managers seek easier rules

FE Report


Investment fund managers have urged the government and the regulators concerned to ease some provisions of related rules and give waiver on stamp duty for boosting venture financing in Bangladesh.

Their plea came Thursday at a roundtable on 'Venture Capital, Opportunities and Challenges" held in the city.

State Minister for Finance and Planning MA Mannan attended the programme as the chief guest.

 Representatives from Bangladesh Bank (BB), Bangladesh Securities and Exchange Commission (BSEC) and National Board of Revenue (NBR) also attended the discussion jointly organised by the Venture Capital & Private Equity Association of Bangladesh (VCPEAB) and the Economic Reporters Forum (ERF).

At the programme the fund managers urged the government to give waiver on two per cent stamp duty imposed on Alternative Investment Funds.

Mr. Mannan said the government is ready to accept potential proposals of entrepreneurs.

"But venture capital should not be adventure capital," Mannan said in his brief speech.

Venture capital is financing that investors provide to start up companies and small businesses that are believed to have long-term growth potential.

The securities regulator formulated Bangladesh Securities and Exchange Commission (Alternative Investment), Rules, 2015 on June 22, 2015.

After formulation of the rules, nine local companies registered with the securities regulator for managing alternative investment funds.

Faisal Ahmed, chief economist at the central bank of Bangladesh, said trust and social awareness is important to enhance venture financing.

"Dialogue should be conducted in a comprehensive way," Faisal said.

Dr. Swapan Kumar Bala, a commissioner of the securities regulator, said due to some experiences of mutual funds the regulator was conservative while framing Alternative Investment Rules.

"But the rules are practical. Nevertheless, will try to facilitate venture financing through amendment of rules," Bala said.

Dr. Jamaluddin Ahmed, a director of the central bank, said the rising trend of different institutions is not as faster as their starting.

He opposed the BB's management of Equity and Entrepreneurship Fund (EEF) saying that the central bank is not trained for such management.

The member of National Board of Revenue (NBR) Parvez Iqbal assured the investment fund managers of considering the proposal of giving waiver on stamp duty to alternative investment funds.    

Mr. Shawkat Hossain, general secretary of VCPEAB, presented his key note speech at the discussion attended by ERF president Saif Islam Dilal and general secretary Ziaur Rahman.

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