The Banking Division of finance ministry may place the Demutualisation Act before the cabinet today for final approval, as part of the government’s effort to ensure transparency and accountability on the country’s stock market.

The finance ministry’s wing will also seek cabinet’s final nod on the Securities and Exchange (SEC) (Amendment) Bill, 2012 and reforms to the SEC Ordinance, 1969.

The reform measures aim to empower the SEC to form tribunals to deal with capital market related cases and to strengthen the regulatory framework for the stock market, in line with the conditions the International Monetary Fund (IMF) has attached to the second installment of a $987 million credit offer for Bangladesh.

“On behalf of the Bank and Financial Institution Division, I will place the Demutualisation Act and amendments the of SEC Act and ordinance on Tuesday,” Md Shafiqur Rahman Patwary, secretary of the Bank and Financial Institution Division, told reporters Monday emerging from a meeting with Finance Minister AMA Muhith at the finance ministry.

The IMF earlier approved $987 million extended credit facility (ECF) for Bangladesh on some conditions including the demutualisation of Dhaka and Chittagong stock exchanges and amending the Bank Companies Act.

The objectives of the ECF scheme include restoring macroeconomic stability, strengthening the external position and achieving more inclusive growth.

However, the Bank companies Act might not be placed before cabinet Tuesday due to some difficulties, the Banking Division Secretary said.

The finance minister will discuss the progress in meeting the conditions set by IMF during his visit to Japan, Shafiqur Rahman Patwary informed.

Muhith is scheduled to leave for Tokyo Tuesday to join the annual meetings of the World Bank and the IMF.

In the second tranche, IMF is supposed to release $141 million under the ECF scheme.

A Bangladesh Bank official earlier said the government has already met all but four conditions which will also be “addressed shortly”. “The government could be able to convince IMF about the matter,” he hoped.

The official also expressed his confidence that the second installment of ECF will be available once the IMF approves the loan at its board meeting to be held on 29 this month.

News: The Daily Sun/Bangladesh/9th-Oct-12