Brokers propose doubling single-day cash deposit limit for investors

The DSE Brokers Association of Bangladesh (DBA) has proposed that the maximum limit of cash for deposit by an investor at a brokerage house be doubled to Tk10 lakh; from the existing Tk5 lakh.

In this regard, DBA on Wednesday submitted a proposal to the Bangladesh Securities and Exchange Commission (BSEC) Chairman Prof Shibli Rubaiyat-ul Islam.

DBA President Sharif Anwar Hossain confirmed this news to The Business Standard.

Sources said an investor can submit only Tk5 lakh cash at a brokerage house in one day to buy securities, as stated in the law. This provision has been in effect for many years.

However, it has now emerged as an obstacle to the businesses of investors and brokerage firms as well as to the development of the stock market, they observed.

Meanwhile, the Bangladesh Bank has already allowed banks to receive a Tk10 lakh deposit from a client in a day.

Concerned stakeholders said as investors fail to purchase their desired shares at a fixed rate in a day, because of the ban on accepting cash in excess of Tk5 lakh, they are growing annoyed and losing their interest in buying shares.

On the other hand, due to a failure to buy shares as per the demand of investors, the daily turnover of brokerage houses has also reduced. Additionally, brokerage houses' income from the commission on transactions is decreasing.

In this way, both investors and brokerage houses are suffering business losses.