Govt boosts small investors aid fund to raise capital market liquidity

The government has added two amenities for small investors to boost funds for them and increase the liquidity of the capital market.

Sheikh Abu
Published : 23 May 2022, 02:06 PM
Updated : 23 May 2022, 02:06 PM

The Tk 1.53 billion, which has been collected after financing from a Tk 9 billion assistance fund for small investors, is being added to the re-investment fund on a revolving basis.

The fund’s term has been extended until 2027.

The date for repayment of the money distributed from the fund in the latest round has been extended until 2028 as well.

The finance ministry on Monday said it thought the expansion of the fund for affected small investors, which was given to the Investment Corporation of Bangladesh, will increase the liquidity flow of the capital market by Tk 5 billion.

The decisions came a day after Finance Minister AHM Mustafa Kamal held an ‘emergency meeting’ to decide what support to be provided to protect the capital market and overall economy amid the unrest in the global market caused by the Ukraine war and the pandemic.

Discussions were held on maintaining normal transactions in the capital market, creating an environment conducive to investment and the kind of assistance required to sustain the economy.

The Dhaka Stock Exchange's key index rose 1.94 percent on Monday, snapping a losing streak that lasted eight consecutive days.