Summary of News

June 30, 2016

1. JS passes Finance Bill with some amendments

Exporters across the board will have to pay 0.70 per cent tax at source from the fiscal year 201617 on their earnings as per tax measures endorsed by parliament in adopting the Finance Bill
2016 Wednesday with few amendments. However, jute exporters will continue to enjoy the 0.60
per cent tax at source on their export income up till June 30, 2019. Both corporate tax and
individual rate for jute goods have been set at 10 per cent, and it will be valid until 2020. For
knitwear and woven garments, both corporate and individual tax rates have been fixed at 20 per
cent.
Investment ceiling for tax rebate for the individual taxpayers is cut to 25 per cent from the
current limit of 30 per cent. In the budget proposal, the government had cut the limit to 20 per
cent. However, rate for tax rebate will remain unchanged at 10, 12 and 15 per cent as per
incomes of the taxpayers. Despite strong demands from the businesses, amount of package VAT
has been kept unchanged in the Finance Act.
Source: Financial Express (http://www.thefinancialexpress-bd.com/2016/06/30/36437/JSpasses-Finance-Bill-with-some-amendments )
2. Number of IPOs drop in FY 16
Some 10 companies and one mutual fund (MF) have raised an aggregate amount of above Tk
8.58 billion through IPOs in the outgoing fiscal year (FY), 2015-16, as against above Tk 13.06
billion raised by 15 companies and one MF in the previous FY, 2014-15. The issue managers
said the number of Initial Public Offerings (IPOs) declined in FY 16 compared to the previous
FY due to sluggish market trend as well as revision in public issue rules.

According to the information of the Dhaka Stock Exchange (DSE), a total of 10 companies and
one MF have raised capital worth above Tk 8.58 billion by floating IPOs in FY 2015-16. Of the
total fund, raised by the 10 companies, above Tk 5.14 billion came as premium of only five
companies. In December 2015, the securities regulator made the use of book-building method
mandatory for the companies willing to offer their primary shares with premium. Later, many
companies, which submitted IPO proposals to go public with premium under the fixed price
method, were asked to revise their proposals for going public under book-building method.
The companies which went public in FY 2015-16 are: KDS Accessories, Simtex Industries,
Regent Textile Mills, Information Technology Consultant, SEML Lecture Equity Management,
Dragon Sweater and Spinning, Doreen Power Generations and Systems, Bangladesh National
Insurance Company, Evince Textiles and the ACME Laboratories. The only one MF which went
public in the fiscal is Vanguard AML BD Finance MF.
Source: Financial Express (http://www.thefinancialexpress-bd.com/2016/06/30/36423/Numberof-IPOs-drop-in-FY-16 )
3.

Former banker Majedur appointed DSE MD

The Bangladesh Securities and Exchange Commission on Wednesday approved a Dhaka Stock
Exchange proposal to appoint former banker KAM Majedur Rahman as managing director of the
bourse. The post of managing director of DSE fell vacant in April after the completion of threeyear tenure of Swapan Kumar Bala at the bourse.
Majedur, currently a director and chief consultant of Financial Excellence Limited (FinExcel), a
financial consultancy firm, has around 35 years experience in banking sector. He started his
banking career as a management trainee with India-based Grindlays Bank Limited in 1981.
Majedur served the bank in various capacities in Bangladesh and abroad, according to FinExcel
website information. He worked as managing director and chief executive officer of Premier
Bank Limited from February 2012 to January 2015. Majedur also worked at Dhaka Bank, AB
Bank, Bank Alfalah and Industrial Promotion and Development Company of Bangladesh.
Source: New Age (http://newagebd.net/238194/former-banker-majedur-appointed-dse-md/ )