Cost price is ‘market price’: BB notification...

Cost price is ‘market price’: BB notification

 Staff Correspondent daily-bangladesh.com

 Published: 08:16 PM, 4 August 2022  

Bangladesh Bank (BB); File Photo

Bangladesh Bank (BB); File Photo

Bangladesh Bank (BB), in a notification, said the Financial Institutions Division of the Ministry of Finance has agreed to consider the cost price instead of the market price in calculating the investment limit of the bank in the share market.

The notification, signed by BB director Md. Abdul Mannan, was issued from the Off-Site Supervision Department on Thursday.

It has been said that the cost price of the concerned bank should be considered as the “market price” in determining the upper limit of investment (exposure limit) in the stock market regarding the bank company’s holding of shares of other companies.

The letter signed by deputy secretary Md. Jehad Uddin said that the cost price can be considered as the market price in determining the bank’s investment limit for investing in the stock market.

According to the current Bank Companies Act, a bank or financial institution cannot hold more than 25 percent of its share capital. It will be a maximum of 50 percent including subsidiaries.

DailyBangladesh/AS