BB fixes capital market investment instruments for NBFIs

​Bangladesh Bank today fixed the instruments which will be considered as stock market investment for non-bank financial institutions.

The central bank has for the first time fixed the instruments for the NBFIs.

The highest limits of investment for the NBFIs were earlier set following the Financial Institutions Act 1993, but it was specified which instruments would be considered as stock market investment.

All listed shares, debenture, corporate bonds, mutual funds and other products at market prices shall be considered as share market investment for the NBFIs, the central bank said in a circular today.

The loans to their subsidiary companies who are doing direct or indirect business with the stock market will also be considered as stock market investment.

The amount of loans the NBFIs have lent to other companies who are dealing with the stock market will also be included in the exposure, according to the BB.

The fund that was given to any stock market investment related fund also will be considered as the stock market investment.

However, the equity investment of its subsidiary companies, long-term equity investment or venture capital and the shares of Central Depository Bangladesh, stock exchanges would not be counted as the capital market investment, the central bank said. 

Source : thedailystar