Chattogram Stock Exchange PLC (CSE) has welcomed the proposed national budget for FY2026-27 as largely positive and reform-oriented, while urging the government to reconsider six key proposals aimed at transforming Bangladesh’s capital market into a deeper, more dynamic and internationally competitive financing platform.
The recommendations were presented by CSE Managing Director M Saifur Rahman Majumder at a post-budget press conference held at the exchange’s conference room on Sunday.
CSE Chairman AKM Habibur Rahman, Shareholder Directors Major (Retd.) Emdadul Islam and Shahzada Mahmud Chowdhury, and Company Secretary Rajib Saha were also present.
Speaking at the event, CSE officials described the inclusion of capital market-related policies and strategies in the national budget for the first time in Bangladesh’s history as a significant milestone. They also praised Finance Minister Amir Khasru Mahmud Chowdhury’s announcement regarding the establishment of the country’s first commodity exchange, calling it a landmark initiative for market development.
According to CSE, all major technical and regulatory preparations for launching the commodity exchange have already been completed. Subject to regulatory approvals, trading could commence within the next three to four months. Initially, futures contracts based on gold, silver and crude palm oil are expected to be introduced.
To support the development of the capital market, CSE placed six key proposals before the government. These include granting a five-year tax holiday for the newly established commodity exchange segment, increasing the tax-rate gap between listed and unlisted companies from the proposed 7.5 percent to 10 percent, and providing tax exemption on the income of newly listed companies during their first three years after listing.
The exchange also proposed reducing withholding tax on non-resident technical services from 20 percent to 10 percent and lowering VAT on software maintenance services from 15 percent to 5 percent to accelerate digital transformation and technological development within the capital market ecosystem.
For strengthening the bond market, CSE recommended setting a target to develop a corporate bond market equivalent to at least 2 percent of GDP. It also called for restoring tax exemptions on zero-coupon bonds and retaining the existing 20 percent final tax treatment on dividend income earned by institutional investors.
CSE leaders emphasized that Bangladesh’s financial system remains heavily dependent on banks. They noted that the practice of financing long-term investments with short-term deposits creates structural risks for the banking sector. Therefore, they argued, the capital market should be strengthened as the primary source of long-term financing for industrialization, infrastructure development and economic growth.
The exchange further proposed converting National Savings Certificates into tradable instruments to enhance market depth and liquidity. It also urged the government to formulate a clear roadmap for establishing Chattogram as the country’s true commercial capital, including the gradual relocation of headquarters of key financial, shipping and capital market institutions to the port city.
CSE welcomed several reform initiatives outlined in the proposed budget, including a review of the feasibility of introducing Real Estate Investment Trusts (REITs), Exchange Traded Funds (ETFs), index hedging and currency hedging instruments. The exchange stated that its next-generation trading platform is already capable of facilitating transactions in green bonds, sukuk, corporate bonds and a wide range of derivative products.
The exchange also praised the government’s plan to make the IPO approval process fully digital and time-bound, saying it would enhance transparency and accountability. Likewise, the proposed transition of the share settlement cycle from T+2 to T+0 is expected to improve market liquidity and capital efficiency. CSE said it is prepared to introduce intraday settlement facilities to support the initiative.
Concluding the press conference, CSE leaders expressed optimism that the effective implementation of the government’s reform-oriented measures would help build a modern, transparent and globally competitive capital market. They reaffirmed the exchange’s commitment to working closely with the government, regulators and other stakeholders to achieve that goal.
