BB fixes capital market investment instruments for NBFIs

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The Bangladesh Bank has today fixed the instruments that will be considered stock market investments for non-bank financial institutions.

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

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

All listed stocks, debentures, corporate bonds, mutual funds and other market-priced products will be considered stock market investments for NBFIs, the central bank said in a circular today.

Loans to their subsidiaries that do direct or indirect business with the stock market will also be considered stock market investments.

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

The fund that has been allocated to a fund linked to a stock market investment will also be considered as the stock market investment.

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

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