New brokers’ minimum paid-up capital to be Tk 100m each: DSE
The Dhaka bourse wants to sell new broking licenses to the companies having a minimum paid-up capital of Tk 100 million though the paid-up capitals of many existing brokers are still below Tk 30 million. The board of the Dhaka Stock Exchange (DSE) has approved some recommendations including this minimum paid-up capital of a company willing to get TREC (Trading Right Entitlement Certificate) paying registration fee and application form fee worth Tk 50 million each. The recommendations will be submitted to the securities regulator as part of the regulatory process of finalising rules required to issue new broking license. Of 250 brokerage firms of the DSE, the paid-up capitals of six are still below Tk 10 million, while 15 brokerage firms have paid-up capital worth Tk 10 million each. According to DSE information, 93 brokerage firms are doing business with paid-up capitals ranging between above Tk 10 million and Tk 50 million each. The Bangladesh Securities and Exchange Commission (BSEC) published gazette notification on the draft rules on June 23 and sought public opinion of it. In the draft rules, the securities regulator has proposed a paid-up capital of Tk 30 million for a company willing to get the stock exchange’s membership. Besides, the BSEC’s draft rules have proposed a registration fee of Tk 0.5 million and application form fee of Tk 0.1 million. Along with proposing a minimum paid-up capital of Tk 100 million, the DSE made the recommendation of setting the non-refundable registration fee for new broking license at Tk 50 million and security deposit at Tk 50 million. Besides, the DSE has proposed application form fee of Tk 1.0 million and annual renewal fee of Tk 0.1 million. The securities regulator had asked the stock brokers to submit a framework on their capital adequacy by June 30, 2020. The DSE officials said the deadline of submitting the framework has been extended till December 31, 2020.
New digital on-boarding solution of MISL for SIBL
Millennium Information Solution Limited (MISL) and Social Islami Bank Ltd. (SIBL) have inked an agreement to implement “Chinho”, the digital on-boarding solution of MISL for SIBL clients. “Chinho” of MISL will be providing an extremely simplified and user-friendly way of account opening for prospective clients of SIBL from anywhere and anytime using their smartphones without having to go to any branch or service outlet of SIBL. Chinho” of MISL automates e-KYC services are complying with the central bank’s guidelines. It simplifies and accelerates customer on-boarding, enhances customer experience and launches banking befitting the modern lifestyle of the clients, all from the palm of their hands. “Chinho” ensures instant account opening with a minimum number of clicks using state-of- the-art technology and ensuring maximum security and it provides an easy and smooth way of Identity management, multi-layer authentication keeping modular and scalability options for the clients on-boarding and KYC system.
Online cattle buying likely to reach new heights this Eid
The ongoing COVID-19 pandemic has brought about many changes to people’s normal lives with a growing dependence on virtual platforms as physical distancing is advised by health experts to limit transmission of the virus, reports UNB. Few could have imagined the annual hajj would one day be restricted to just a few Muslims inside the Kingdom of Saudi Arabia. But that’s the reality today as physical distancing remains crucial amid coronavirus pandemic. With it the second biggest Islamic festival, Eid-ul-Azha, for which buying cattle is an integral part, is also set to be observed with severe restrictions. The government has already come up with some ideas to avoid risk in the cattle markets through proper management while the income level of most of the people has come down due to the current situation. In Bangladesh for the past few years, online cattle trade has been gaining momentum and this year it is likely to surpass all previous volumes. Due to the safety regulations for preventing the spread of COVID-19, the digital platforms are already gearing up and have the possibility to outsell the offline haats. Currently, there are more than 100 online vendors; commercial enterprises and individuals included, who are ready to sell sacrificial animals. A government-backed digital platform, ‘Food for Nation’ started registration of sacrificial animal sellers Tuesday.
Indian economy’s medium-term outlook remains uncertain: RBI Governor
The medium-term outlook for the Indian economy remains uncertain with supply chains and demand yet to be restored fully while the trajectory of the coronavirus spread and the length of its impact remain unknown, Reserve Bank of India Governor Shaktikanta Das said on Saturday. According to most estimates, the Indian economy will register a record contraction of over 4.5 per cent in the current fiscal year that started on April 1 due to the pandemic. Starting late March, the country was placed under one of the strictest lockdowns in the world for over two months. Since early June, the government has started easing restrictions to help some revival in the economy even though the number of infections in the country continues to rise. Das said that the 2008 global crisis and the current crisis show that such economic shocks have “fatter tails” than generally believed, and that the country’s financial system should have larger capital buffers. A recapitalisation plan for Indian banks is necessary as the economic impact of the pandemic may result in higher bad loans and erosion of capital for banks, the RBI governor added. The central bank has cut policy rates by 115 basis points in response to the pandemic, resulting in a total policy rate reduction of 250 basis points since February 2019, along with providing liquidity of 9.57 trillion rupees ($127.28 billion). It has also eased some bad loan provisioning norms and allowed loan moratoriums for retail customers. Das said that the central bank has to carefully unwind the unusual monetary and regulatory measures taken to cushion the economic shocks in the post pandemic world, as the financial sector should return to normal functioning without relying on the regulatory relaxations as the new norm.