Stock brokers cry out for support

Abdul Mannan, a stock investor who maintains two beneficiary owner's accounts, has been incurring losses on all counts for the last six months as the stock indices were plumbing new depths every day amid a fund crisis and a confidence deficit in the market.

On top of the heap of his woes, Mannan did not win a single lottery in the initial public offerings (IPO) in the last two years.

"My patience has exhausted," he said.

Mannan is one of the 10 lakh stock investors in the country who think at least a waiver of the BO account maintenance charge may bring them some respite at this crucial moment.

"The government should forfeit the fees for at least one year," he said.

DSEX, the benchmark index of the Dhaka Stock Exchange, sank to a six-year low of 3,603 points on March 18. The bourses have been shut since March 25 in line with the government-declared holidays to contain the spread of the coronavirus pandemic.

Many stockbrokers are also in peril as they have been counting huge losses due to the falling turnover in the market.

Against the backdrop, DSE Brokers' Association (DBA) has sought an incentive package from the government and sent a letter to the finance minister on Tuesday.

The Central Depository Bangladesh Ltd is a profitable company and it will not impacted much if it does not charge investors any fee for BO account maintenance for one year, said Sharif Anwar Hossain, president of the DBA. There are now 25.78 lakh BO accounts in the market.

The stockbrokers asked for a government fund to bear office expenses and pay employees' salaries. They expressed intention to pay back the money within two years with 3 per cent interest.

The DBA called for lowering advance income tax on share trading to 0.015 per cent from existing 0.05 per cent.

The stockbrokers also made an appeal to the government to allow the investment of undisclosed money in the stock market for three years.

Interest on margin loans should be waived for one year and stock investors should be provided loans at 3 per cent interest, the DBA said.