The government has cut import tax on green chillies and tomatoes from 61% to 20.50% following a sharp rise in their prices.

The Internal Resources Division (IRD) of the Ministry of Finance issued the order on 30 August and published it on the government website yesterday (31 August).

The lower tax rate will remain in effect for one month before rising to 30% for another month. After 60 days, it will return to the previous rate of 60%, according to the order.
Officials of the National Board of Revenue (NBR) were primarily involved in preparing the order on behalf of the IRD.

A senior NBR official familiar with the development told The Business Standard, "The prices of these two products have increased in the market recently. The reduction in import tax will create an opportunity to increase supply in the market, allowing consumers to purchase the products at somewhat lower prices."

Green chilli prices began rising in July and crossed Tk400 a kilogramme in some markets in August, according to media reports.

The government took the latest measure following the sharp rise in prices.

The Russian economy runs a risk of going "berserk" if it is run ​to focus entirely on the needs of the military-industrial complex, President Vladimir Putin's international development envoy was quoted ‌as saying on Tuesday.

The comments by Boris Titov to business news outlet RBC were a rare sign of concern in Kremlin circles about the increasing pressure on the slowing economy to secure a victory in the 4-1/2-year war in Ukraine.

Titov, appointed in 2024 as Putin's special representative to international ​organisations for achieving sustainable development goals, is a wealthy businessman who used to own Russia's leading producer of sparkling wine. ​He led an influential business lobby and ran for president in 2018.

"Military and civilian economies have ⁠always existed in symbiosis everywhere. Many technical inventions that are useful for all originated within the military-industrial complex. The key ​lies in maintaining balance," Titov told RBC.

Russia has hiked taxes, embarked on property redistribution, welcomed contributions from businesses to finance the ​war, and, most recently, threatened business owners who are not doing enough to protect their facilities from Ukrainian drones.

War hawks and some government officials often refer to the reorganisation of the Soviet economy under dictator Josef Stalin during World War Two as a model, citing the wartime slogan "Everything for the ​front, everything for victory".

'BERSERK' MODE IS TIME-LIMITED, TITOV SAYS

This approach is met with cautious but growing resistance from various sectors.

"This ​is not an economy at all, it's a kind of 'berserk mode' that can only exist for a very limited time, and the necessity of ‌which ⁠should be considered very carefully," Titov said on the eve of a major economic forum that Putin will attend this week in Russia's Far East.

RBC, which conducted the interview, noted that the term berserk derived from mythological Norse warriors who entered a trance-like state, possibly drug-induced, that enabled them to fight ferociously and ignore pain.

The Russian economy is expected to grow at only 0.4% ​this year, and many non-military ​sectors are stagnating or shrinking. ⁠Ukrainian attacks on economic targets such as refineries, online retailers and oil and grain export infrastructure may push this growth rate even lower.

Titov's comments echo a statement by Moscow's technocrat mayor Sergei ​Sobyanin, who argued last month that "killing a normal economy is equivalent to killing the whole ​country".

Andrei Klepach, the ⁠chief economist at the state development bank, lost his job last month after highlighting the economic challenges posed by the war in a public speech.

Russia will hold a parliamentary election this month, from which the only political party calling openly for an end to the war ⁠had been ​barred. Opinion polls show growing fatigue from the war and support for ​a peace settlement.

Such sentiment is being exacerbated by persistent rumours of a large-scale post-election military mobilisation for a final push to seize the whole of the Donbas ​region of Ukraine. The Kremlin has called such rumours a hoax.

The monthly spending limit under Direct Operator Billing (DOB), a regulated payment mechanism that allows mobile customers to pay for smartphones and other specified goods and services using their mobile balances, has increased by 150 percent to Tk 5,000.

According to the Bangladesh Telecommunication Regulatory Commission (BTRC), the annual ceiling has also risen by 150 percent, from Tk 20,000 to Tk 50,000, in a move aimed at helping people without credit cards or bank accounts make purchases. Previously, smartphones could not be purchased through DOB.

The telecom regulator, following approval from Bangladesh Bank, has raised the limits for six months, according to documents reviewed by The Daily Star.

DOB allows customers to use their mobile phone balance as a payment source, similar to a credit or debit card. It is not a general-purpose mobile wallet and can only be used for specified goods and services.

BTRC officials and industry people said the higher limit would allow customers to purchase smartphones, SIM-based devices and routers, along with other eligible digital products and services. The higher ceiling could also enable smartphone purchases through instalment plans, with payments made from mobile balances.

So far, only Grameenphone has received approval under the revised ceiling. Other operators can also apply for approval, the regulator said.

“The government is trying to increase smartphone penetration, and this would allow customers who do not have access to cards or other banking channels to purchase handsets using their mobile balances,” said Tanveer Mohammad, Grameenphone’s new chief corporate affairs officer.

WHAT DOB CAN BE USED FOR

Customers can use DOB to pay for eligible digital products and services, including digital content, app and in-app purchases, online utility bills, e-ticketing, e-health services, government lotteries, online platform subscriptions and education platforms.

However, mobile balances cannot be used as unrestricted digital money.

The rules prohibit DOB transactions involving financial or speculative activities. Customers cannot use it to buy virtual currencies or similar items used in social media applications and games, including coins, points, credits, coupons, diamonds and gems.

Transactions involving apps that collect investments from the public, provide loans, store money or facilitate other financial transactions are also prohibited.

DOB cannot be used for gambling, casinos, lotteries, cryptocurrency or crypto-asset trading, foreign-exchange trading, stock-market trading or multi-level marketing activities.

For services provided by non-resident merchants requiring foreign-currency remittances, relevant approval from Bangladesh Bank’s Foreign Exchange Policy Department must be obtained where applicable.

LIMITS RAISED AFTER YEARS

The latest increase follows years of gradual expansion of DOB limits.

When DOB was introduced in Bangladesh in 2018, Bangladesh Bank set the monthly spending limit at Tk 600 and the annual ceiling at Tk 3,000.

In December 2025, the central bank temporarily raised the limits to Tk 2,000 per month and Tk 20,000 per year until June 2026. The BTRC subsequently allowed operators to provide the service under those higher limits, subject to Bangladesh Bank’s conditions.

Operators must ensure that digital products and services purchased through DOB are delivered and put measures in place to protect customers. They must also formulate refund and chargeback policies.

DOB operations will be subject to Bangladesh Bank inspections, while mobile operators will be treated as reporting organisations under relevant money-laundering and anti-terrorism laws.

Bangladesh's merchandise exports rose 13.14% year-on-year to $4.43 billion in August 2026, driven by strong growth in ready-made garments (RMG) and several non-RMG sectors, according to the Export Promotion Bureau (EPB).

Exports stood at $3.92 billion in August 2025.

During the first two months of fiscal year 2026-27, merchandise exports increased 5.43% to $9.16 billion from $8.69 billion in the same period a year earlier.
The RMG sector remained the main driver, with exports rising 13.92% to $3.89 billion in August. Cumulative RMG exports in July-August grew 5.12% to $7.50 billion.

Both major apparel segments posted double-digit growth in August, with knitwear exports rising 14.88% and woven garments 12.70%. For July-August, knitwear exports grew 6.17% and woven garments 3.81%.

Non-RMG sectors also recorded strong growth. Jute and jute goods exports rose 37.09% in August, followed by pharmaceuticals at 28.52%, leather and leather goods at 24.85%, printed materials at 24.83%, engineering products at 23.88% and other footwear at 15.29%.

During July-August, exports of printed materials increased 41.89%, pharmaceuticals 38.94%, other footwear 27.32% and jute and jute goods 22.26%.

Mahmud Hasan Khan Babu, president of the BGMEA, attributed the RMG export growth in August partly to a low base in the same month last year, when US reciprocal tariffs contributed to a 3% decline in exports to the US and a 10.43% fall in shipments to the European market. Compared with July 2026, August earnings actually fell by about $278 million, he pointed out.

However, he said the growth reflected the industry's resilience amid the ongoing gas crisis, high interest rates and adverse global trade conditions. Recent government policy support had also helped protect the industry. For a sustainable export recovery, he stressed the need for stronger policy support on energy security, lower interest rates and reducing the cost of doing business while improving the ease of doing business.

US remains top market

The United States, Bangladesh's largest export destination, recorded 26.09% growth in imports from Bangladesh in August. Exports to the US rose 11.90% cumulatively in July-August.

The United Kingdom regained its position as Bangladesh's second-largest export market, followed by Germany, Spain and the Netherlands, according to the EPB.

Infographic: TBS
Infographic: TBS

Among emerging markets, exports to Türkiye surged 141.03% in August, while shipments to South Korea and Saudi Arabia rose 42.37% and 42.09%, respectively.

The EPB attributed the growth to stronger demand in major markets, increased buyer confidence in Bangladesh as a sourcing destination and expanded production capacity. Higher exports of value-added products and efforts to diversify products and markets also contributed, it said.

The latest figures come amid a challenging global trade environment, with exporters facing weaker demand in some markets, shifting sourcing patterns and rising competition from other apparel-producing countries.

The EPB said continued growth in knitwear and woven garments, along with strong performances by pharmaceuticals, leather goods, jute products, engineering goods and footwear, demonstrated the competitiveness and resilience of Bangladesh's export sector.

RMG continues to account for the overwhelming majority of merchandise exports, highlighting the need to sustain growth in non-traditional sectors to diversify the export basket.

The country's premier bourse returned to positive territory today (1 September), providing a much-needed respite to the capital market after a prolonged downturn.

Driven by aggressive bargain hunting and renewed optimism over structural reforms, the benchmark DSEX index of the Dhaka Stock Exchange (DSE) surged by 39 points, or 0.70%, to settle at 5,637.

Market participation saw a healthy spike as total turnover on the DSE jumped by 25% to reach Tk596 crore, compared to the previous session. The day's trading was characterised by overwhelming bullish dominance, with the market breadth showing 300 issues advancing, 50 declining, and 38 remaining unchanged.

According to EBL Securities' daily market review, the ailing capital market got some relief as investors viewed prevailing prices as attractive entry points. Bargain hunters stepped in to accumulate beaten-down stocks, particularly in sectors that had undergone sharp corrections.

The market opened on an optimistic note, supported by favourable remarks from regulators on the capital market's long-term development. Although selling pressure emerged intermittently after mid-session, it was not enough to wipe out the morning gains, with buyers remaining in control until the close, it added.

Sheltech Brokerage Limited observed that the rally was driven mainly by renewed buying interest and optimism over the Bangladesh Securities and Exchange Commission's (BSEC) recent market-development initiatives. The benchmark index climbed to an intraday high of 5,674.16 points, but late-session profit-taking erased much of the gain.

The index eventually closed near its intraday low of 5,624 points as some investors opted to book quick profits amid persistent domestic challenges, it also said.

On the sectoral front, the textile sector dominated the floor, accounting for 27.9% of the total turnover, followed by the banking and pharmaceutical sectors at 12.2% and 12.0%, respectively.

Nearly all sectors posted gains, led by mutual funds, which rose 4.2%, followed by general insurance at 2.2% and information technology at 2.0%. Cement was the only laggard, declining marginally by 0.4%.

Among individual stocks, First Finance was the top gainer, rising 8.88%, followed by First Janata Bank Mutual Fund and PHP First Mutual Fund, both up 8.82%.

On the flip side, Jute Spinners was the top loser, falling 3.61%, followed by Meghna Condensed Milk and Nurani Dyeing. IPDC Finance, Saiham Textile and Saiham Cotton were among the most actively traded stocks.

The bullish sentiment was stronger at the Chittagong Stock Exchange (CSE), where the Selective Categories' Index (CSCX) gained 37 points to 9,237, while the All Share Price Index (CASPI) rose 60 points to 15,130. Trading activity surged 207%, with turnover reaching Tk51 crore.

Bangladesh's remittance inflow continued its upward trend in August, rising more than 22 per cent year on year to $2.97 billion, according to Bangladesh Bank data.

The inflow was $545 million higher than the $2.42 billion received in the same month a year earlier.

The latest monthly figure was also 3.77 per cent higher than the $2.86 billion recorded in July, the central bank data showed.

Among banks, Islami Bank Bangladesh received the highest remittance inflow in August at $550.89 million, followed by Bangladesh Krishi Bank with $291.91 million, BRAC Bank with $252.81 million, Trust Bank with $211.49 million and Agrani Bank with $162.08 million.

Despite the strong growth, monthly remittance inflows have remained below $3.0 billion for three consecutive months since May.

Bangladesh Bank officials attributed the rise to stricter crackdowns on informal hundi channels, improved exchange-rate policies and growing confidence among non-resident Bangladeshis in using formal banking channels.

Higher remittance inflows have helped ease pressure on the balance of payments and support the country's foreign exchange reserves.

According to Bangladesh Bank, gross foreign exchange reserves stood at $37.41 billion under its own calculation and $32.50 billion under the IMF's BPM6 methodology as of September 1.

At the end of July, the reserves stood at $36.42 billion under Bangladesh Bank's calculation and $31.60 billion under the IMF methodology.

The Bangladesh Securities and Exchange Commission (BSEC) has relaxed dividend compliance requirements for foreign investors, tying the remittance deadline to the issuance of a Double Taxation Avoidance (DTA) certificate by the National Board of Revenue (NBR).

The decision was finalised at a commission meeting held today (1 September), according to a press release.

Under the revised guidelines, listed companies must remit declared or approved dividends to non-resident foreign shareholders within 30 days of receiving the DTA certificate from the NBR.

However, the remittance must still be completed within the relevant financial year.

The move is expected to ease a key compliance challenge listed companies have faced in distributing dividends to overseas shareholders.

The BSEC has also revised the timeline for dividend compliance reporting by listed companies. After completing dividend distribution to domestic shareholders, companies will now be required to submit a Preliminary Dividend Compliance Report.

Following the remittance of dividends to foreign shareholders, companies will then have to submit a final Dividend Compliance Report to the BSEC and the respective stock exchange within 30 days of the remittance.

The revised framework is intended to improve transparency while providing companies with greater flexibility to complete dividend payments to non-resident investors.

Previously, listed companies faced difficulties meeting fixed dividend remittance deadlines because obtaining DTA certificates from the NBR could take time. Such administrative delays created a mismatch between the regulatory deadline for dividend payment and the actual availability of the required tax documentation.

By starting the 30-day remittance period from the date of receiving the DTA certificate, the BSEC has sought to align the compliance requirement with the actual process of obtaining tax relief documentation.

Market analysts believe that by linking the 30-day deadline to the receipt of the NBR's tax certificate, the BSEC is providing a more realistic and enforceable timeline for companies.

This clarity is being seen as a positive signal to global fund managers, suggesting that Bangladesh is moving toward international best practices in dividend processing and capital repatriation.

Private firms can buy bad loans from banks, seize mortgaged assets and take over indebted companies under legal provisions readied for enactment, sources say about the desperate remedy for deep-rooted ailment.

A formal market is proposed to be created for buy and sale of bad loans from banks, at a time when commercial banks are burdened with high concentrations of non-performing loans (NPLs).

A new central bank-drafted law moves further to propose inviting both domestic and foreign investors to invest capital in the sluggish banking sector to give a shot in its arm.

The Bangladesh Bank has urged the finance minister to take necessary steps to place the proposed amendment to the Artha Rin Adalat Ain 2003 and the new Distressed Asset Management Act (DAMA) 2026 before parliament during its ongoing session, out of exigency.

The proposed amendment and new law are aimed at making the recovery of defaulted loans more effective, dynamic and time-befitting, while facilitating the management, restructuring and settlement of distressed assets of banks and financial institutions.

Bangladesh Bank Governor Md. Mostaqur Rahman has issued a Demi-Official (DO) letter to the finance minister requesting the enactment of the proposed amendments to the Money Loan Court Act as well as the proposed new DAMA during the ongoing session of parliament.

The central bank has already sent drafts of the two laws to the Financial Institutions Division of the Ministry of Finance for necessary action, according to a letter sent to the ministry.

In the letter, the central bank has said the proposed laws would help accelerate loan recovery, improve the quality of banks and financial institutions' balance sheets and strengthen good governance in the country's banking sector, roiled by past irregularities.

The banking-sector regulator has also sought the ministry's initiative to place the two legislative proposals before the ongoing parliamentary session with the belief that their enactment would contribute to financial stability and help accelerate overall economic activities.

The central bank chief also has written that, soon after assuming office, he took several effective initiatives to revitalise the economy, including reopening closed and capital-starved industrial units to create employment, restoring depositor confidence by reestablishing good governance in the banking sector, expanding the digital economy and raising foreign-exchange reserves to the desired level.

"Nevertheless, the high level of NPLs and distressed assets in the banking sector continues to undermine overall financial stability in the country," the governor notes.

The latest BB move comes as a high level of non-performing loans (NPLs) and distressed assets continues to pose a major challenge to stability in the country's banking sector despite the central bank's different policy supports.

The classified loans in the country's banking sector ballooned to Tk 5.89 trillion as of March 2026, accounting for 32.26 per cent of the entire loans worth Tk 18.25 trillion disbursed by all scheduled banks.

The main objective of the DAMA is to create a formal market for buying and selling bad loans. The law also aims to attract both domestic and foreign investors and strengthen the financial system.

The proposed DAMA would allow private firms to purchase bad loans from banks, seize mortgaged assets and take control of indebted companies.

The draft also proposes establishing an independent regulator, Distressed Asset Management Unit (DAMU), under the oversight of the central bank.

It would also have the authority to establish a special enforcement body, styled Distressed Asset Enforcement Taskforce (DAET).

The government has taken an initiative to enact the DAMA in line with recommendations from the World Bank, the International Monetary Fund (IMF) and the Asian Development Bank (ADB) to improve the efficiency of managing classified loans and distressed assets in the banking sector, according to officials familiar with the developments.

They also said the central bank recommended settling cases related to the Artha Rin Adalat Ain or Money Loan Court Act within the timeframe of six months.

The draft law also proposes forming Appeal Tribunal, determining reserve prices in auction, appointing recovery officer in execution cases and for filing appeal to increase the amount of deposit money.

Fuel shortages, production and supply-chain disruptions, difficulties opening letters of credit (LCs) and unchecked middlemen, rather than the newly approved pay scale, could drive up prices of essential commodities, businesses said today (1 September).

They said prices of sugar, edible oil, pulses, flour and refined flour should remain stable if supply is adequate and aligned with demand.

The observations came at a views-exchange meeting between the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and businesses involved in importing, wholesaling and retailing essential commodities at the federation's Motijheel office in Dhaka. FBCCI Administrator Md Fazlul Hoque chaired the meeting.

The discussion came amid concerns that the new pay scale could push up prices of essential goods.

Wholesalers and retailers said maintaining adequate supplies would be key to price stability and called for uninterrupted fuel supplies to production-oriented factories.

Mill owners said gas and electricity shortages were already disrupting production, while difficulties opening LCs were creating additional challenges for essential commodity importers.

Gholam Mawla, general secretary of the Moulvibazar Business Association, said the market could not remain stable unless imports and mill production continued without disruption. He called for urgent measures to resolve the fuel crisis and LC-related complications.

Pay bonanza for govt staff amid inflation, energy crisis
Mill owners' representatives also said domestic sugar prices had remained unchanged despite higher international raw sugar prices.

Traders called for stronger oversight across the supply chain to prevent unnecessary price increases.

Md Zakir Hossain, general secretary of the Bangladesh Supermarket Owners Association, suggested reducing the number of times products change hands before reaching consumers to lower supply-chain costs.

Business leaders also called for stronger price monitoring at wholesale and retail markets and mill gates, as well as law enforcement intervention where necessary to prevent harassment along the supply chain.

Md Abul Kalam Azad, organising secretary of the Consumers Association of Bangladesh, urged the government and businesses to ensure uninterrupted supplies and curb the dominance of middlemen.

The meeting also discussed government measures to keep essential commodities affordable.

A Trading Corporation of Bangladesh (TCB) representative said the state-run agency was selling essential commodities at subsidised prices to nearly one crore families through its family card programme. A Directorate General of Food representative said subsidised rice was being distributed to low-income people under the Food-Friendly Programme.

Businesses, however, urged TCB to strengthen its capacity to import directly or source from alternative suppliers rather than relying mainly on domestic companies.

In his closing remarks, Fazlul Hoque said the recommendations would be documented and placed before policymakers. He urged businesses to cooperate to ensure the new pay scale does not lead to unjustified price increases.

The Bangladesh Securities and Exchange Commission (BSEC) has approved a draft regulation allowing qualifying companies to get listed on stock exchanges directly, without going through an Initial Public Offering (IPO), by offloading a portion of existing shareholders' holdings.

The decision was taken at the 1,027th commission meeting held on Tuesday at the BSEC office, chaired by its Chairman Masud Khan.

Under the draft “Bangladesh Securities and Exchange Commission (Direct Listing of Securities by Stock Exchange) Rules, 2026”, companies will be able to list through direct listing by offloading at least 10 to 20 percent of shares held by existing shareholders, instead of raising fresh capital through an IPO.

Eligible companies include those wholly or majority owned by the government; companies where the government holds at least 10 percent of paid-up capital directly or indirectly; companies majority owned by foreign shareholders; BTRC-approved telecom and ICT service or infrastructure companies with a minimum paid-up capital of Tk 300 crore; scheduled banks, financial institutions and insurance companies with at least three years of commercial operation; and companies with an annual turnover or total assets of at least Tk 500 crore.

Companies will also need to fulfil additional conditions set by the respective stock exchange, depository and central counterparty as prescribed by the commission.

The draft rules will be published in newspapers and on the BSEC website shortly for public opinion, the commission said in a press release.

The Bangladesh Securities and Exchange Commission (BSEC) has relaxed a stringent rule regarding the transfer of shares held by sponsors and directors of "Z-category" companies, shifting administrative authority directly to stock exchanges.

In a commission meeting held today (1 September), the regulator decided that its prior approval will no longer be required for specific equity security transactions involving these troubled firms.

According to the amendment, the commission has specifically waived the need for direct BSEC permission in cases involving the confiscation of shares due to loan defaults and the transmission of shares following a shareholder's death.

This decision follows a thorough review of a previous directive issued on 20 May 2024, which had imposed a blanket restriction on all forms of share transactions – whether on the trading platform or off-market – for sponsors and directors of non-financial companies listed in the junk category.

Under the revised framework, the country's bourses will now be empowered to facilitate and execute such transfers in accordance with existing listing regulations.

Market analysts believe this shift toward deregulation will eliminate unnecessary bureaucratic hurdles and expedite legal processes, particularly for lenders seeking to recover defaulted dues or legal heirs managing inheritance matters.

The 2024 directive was originally implemented to prevent sponsors and directors of poorly performing or non-compliant companies from dumping their holdings without regulatory oversight. While monitoring remains intact, the commission aims to streamline operations by delegating specific responsibilities directly to the stock exchanges.

The move marks another step in the commission's broader push to simplify market operations and reduce excessive intervention, according to officials.

The securities regulator has given its permission to Dominage Steel Building Systems to transfer 30.78 million ordinary shares to Akij Resources and two individuals, resulting in a significant reshuffling of the company's ownership.

The Bangladesh Securities and Exchange Commission (BSEC) gave its approval on August 27, paving the way for the proposed transfer, according to a regulatory filing on Sunday.

As per a negotiated deal, the shares will be transferred at a price of Tk 13 each, said BSEC spokesperson Md. Abul Kalam.

So, Akij Resources and two individuals will have to pay more than Tk 400 million to receive the shares of Dominage Steel.

The individuals who purchased the shares are Sheikh Jasim Uddin and Faria Hossain.

The company said the transfer would be executed outside the regular trading system as a matched transaction. A matched transaction is generally used for a predetermined block of shares between identified parties, rather than through buying and selling orders on the stock exchange.

Dominage Steel said it would inform the market once the share transfer is completed.

Earlier in April this year, Dominage Steel's board decided to sell ownership stakes at a negotiated price through an off-market transaction.

Upon completion of the regulatory process, a new board of directors will take over the management and operations of the company.

No company of the Akij Group has yet been listed on the stock exchanges. So, it will enter the secondary market through the acquisition of Dominage Steel.

Akij Resources holds a significant presence in the steel and construction sectors through its subsidiaries. Officially established in April 2020, it builds on the heritage of the Akij Group, one of Bangladesh's largest conglomerates.

Meanwhile, the stock of the listed steel manufacturer has climbed remarkably over the last year. It surged 401 per cent to Tk 86.2 between September 1 last year and July 28 this year. Later, the stock declined and closed at 63.60 on Monday, gaining 0.32 per cent over the previous day.

The market price of the shares to be transferred stands at Tk 1.95 billion.

As per the securities rules, the sponsor-directors of a listed company are required to jointly hold at least 30 per cent of shares. Hence, the shares will remain locked as sponsor holding.

The Dhaka Stock Exchange (DSE) plans to introduce financial derivatives by January 2028 after the Bangladesh Securities and Exchange Commission (BSEC) approved its action plan for launching the new asset class.

According to a BSEC press release issued after a commission meeting on today (1 September), the bourse will initially introduce index futures, with contracts based on the blue-chip DS30 index expected to be the first products.

The approved roadmap covers regulatory reforms, trading and other infrastructure, clearing and settlement systems, and risk management measures. BSEC will also monitor the DSE's progress in implementing the plan.

A senior DSE official said the bourse also plans to introduce exchange-traded fund-type instruments under the new segment. Unlike conventional share trading, derivatives allow investors to trade contracts linked to the future price movements of underlying assets.

The DSE will procure a new multi-asset trading engine by 2028 to handle derivatives and multiple clearing systems. Its existing Nasdaq-provided trading engine, which mainly supports equity trading, is scheduled to expire in 2027.

In preparation, the DSE will conduct feasibility studies, workshops and seminars for market participants.

The introduction of derivatives is expected to deepen the capital market and give local and foreign investors additional tools for hedging and risk management.

With a view to tightening regulatory oversight and enforcing strict supervision, the Bangladesh Securities and Exchange Commission (BSEC) constituted an 8-member standing joint inspection panel to conduct surprise inspection of stock brokers and stock dealers across the country.

The eight-member inspection panel is comprising of members from the regulatory body, stock exchanges and central depository of Bangladesh Limited (CDBL), according to official order of the commission.

On Monday, BSEC Chairman Masud Khan, speaking at an open discussion titled "The Current State of the Bangladesh Capital Market and Way Forward", organised by the DSE Brokers Association of Bangladesh (DBA) said, "Much has been discussed about surveillance of brokers. A broker may have several types of problems. Some are regulatory in nature, while another is a shortfall in the CCA, which has accumulated over many years.

"When irregularities occur, the commission imposes fines, which is a regular measure. But when there is a major shortfall, simply imposing a fine is not enough. A fine leads to a certificate case, which can continue for a long time.

"We need to adopt a risk-based approach and conduct surprise visits. In some cases, CCA shortfalls were detected, the money was returned, and then withdrawn again. The commission and the DSE have agreed to conduct visits on a regular basis."

Considering past incidents where brokerage houses embezzled client funds using duplicate servers to display fake information, the regulator aims to prevent further misappropriation through surprise inspections.

Capital market investors usually deposit their hard-earned money through brokerage houses into listed shares of the capital market.

These funds are kept separately in Consolidated Customers' Accounts (CCA), which can only be used to buy and sell shares on behalf of the investors.

However, recent cases show that some brokers embezzled funds from these accounts for personal use, creating severe client deficits.

This embezzlement has severely damaged investor confidence and discouraged further capital market investment, leading to a steady decline in active investors.

So, now the capital market regulator planned to increase surveillance in to the stock brokers, who were licensed to work for the investors for buying and selling shares of the listed companies also for the its own account.

The joint panel

As decided by the capital market regulator, a standing eight-member joint inspection panel will be formed, comprising two representatives each from the Bangladesh Securities and Exchange Commission (BSEC), Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), and Central Depository of Bangladesh (CDBL).

Each institution will nominate two members to represent them.

Once formed, the panel will conduct unannounced inspections of brokerage houses to review Consolidated Customers' Accounts (CCAs), regulatory compliance, margin lending rules, and other related issues.

Through a letter to the respective institutions, the reglator sent seprate letters asking nomination of two members in the standing joint inspection panel.

In the letter, the BSEC stated that the Commission has decided to constitute a standing Joint Inspection Panel for conducting spot/surprise inspections/visits of stock brokers and stock dealers.

The initiative aims to tighten regulatory oversight, enforce strict compliance with securities laws, and safeguard general investors' interests.

According to previous news of TBS, on the day of an inspection, officials will meet at the BSEC office in the morning and select a brokerage from a list of firms identified as potentially risky based on suspicious activities, possible irregularities and other risk indicators.

The inspection team will then be sent to the vicinity of the selected firm before the inspection notice is issued.

The BSEC will subsequently send a spot inspection letter to the firm's head, after which the team will arrive at the office and begin the inspection.

The procedure is intended to minimise the time available for firms to alter records, manipulate software or conceal irregularities.

The new salary structure approved by the government for public sector employees on Monday could lead to a slight increase in inflation, says Prime Minister's Information and Broadcasting Adviser Zahed Ur Rahman.

He said, "Inflation is very high now, isn't it? It’s high. The inflation rate in Bangladesh has been high for a long time. In a country like ours, of course, there should be some inflation. If it's up to 5 per cent, up to 6 per cent, then it's good or okay.

"But for us, it has reached double digits, even crossed it. At the moment, it has decreased a little, at least that's what our data says."

The information adviser was speaking at a weekly press conference on the progress of different government projects in the conference room of the Press Information Department at the Secretariat on Tuesday, bdnews24.com reports.

Zahed said, "If this many people actually get an increase in their (public sector employee) salaries, there is a risk of some inflation. There are many senior employees who have reached close to the salary they will get in the new scale due to their salary increments.

“So, a lot of money will reach the people, but there are concerns about where the government will meet this expenditure, about where the money will come from, but while (the expenditure will increase, the government has a budget for that expenditure). It is not that the inflation rate increasing is impossible. There is a possibility of inflation increasing a bit.”

Regarding the implementation of the new salary structure, Adviser Zahed said: “The new pay scale has been announced, and a roadmap has been given on how it will be implemented step by step.

“I would like to mention two very significant findings. One is that if an employee has a child with special needs, he will get a monthly allowance of Tk 3,000. I claim this is a very groundbreaking step.”

He said, “I am not saying that Tk 3,000 is a lot of money. I am not saying that all problems can be solved with it. But we know that these children with special needs need special care, treatment, special schools. The state, this government, is recognising all this, and it will help them to some extent.

“We hope that as the state’s capacity increases—when the state recognises something that people are suffering from, they recognise that people have needs—we can hope that the amount of this allowance will increase soon. This is a very big deal.”

Regarding the salaries and allowances of government employees at the Grade-1 level, he said, “The second thing is that there has always been a reasonable criticism regarding the ratio between our Grade-1 - this calculation is available all over the world; if you search for it, you can find it - and the last grade—what is their compensation ratio? It is very high in Bangladesh, huge. The lower it is, the better.”

Stating that the government is trying to reduce the difference, Zahed said: “You will see that there is also an effort to reduce this disparity. The first 10 grades will increase step by step to a maximum of 100 per cent, and the next 10 grades will increase up to 142 per cent.

“Then the gap, the ratio, that we had between Grade-1 and Grade-20 will decrease. I think this is also a step to reducing inequality.”

The securities regulator is set to finalise the direct listing framework within a month, allowing well-governed private companies, state-owned enterprises and multinational firms to enter the stock market by bypassing the need to float an IPO.

"The draft direct listing rule is almost complete and will be placed for approval at the commission meeting tomorrow (Tuesday)," said Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan on Monday.

The draft will be published for public opinion this week before being finalised within the next month, he added.

Mr Khan made the remarks at an open discussion titled "The Current State of the Bangladesh Capital Market and Way Forward", organised by the DSE Brokers Association of Bangladesh (DBA) at the DSE Tower in Dhaka.

Currently, only state-owned entities can use the direct listing mechanism to list by floating at least 25 per cent of their shares.

Once the direct listing framework is finalised, the Central Depository Bangladesh Limited (CDBL), the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) will be listed, said the BSEC chief.

The initiative is expected to encourage quality companies to enter the market, particularly large private firms, state-owned enterprises and multinational companies that are otherwise reluctant to raise funds by issuing primary shares.

The commission is also pursuing a series of structural reforms, including a hybrid IPO mechanism, T+1 settlement, activation of the Central Counterparty Bangladesh Limited (CCBL), development of the bond market and introduction of an extended audit for issuers.

Listing of "public interest companies"

The BSEC is also working on a framework to bring certain companies to the capital market.

Referring to Section 20A of the Securities Act, Mr Khan said the commission has the authority to direct companies to come to the market when it considers such listing necessary in the public interest.

A new regulation would define "public interest companies", and they would be required to list, Mr Khan said.

The BSEC is also seeking to shorten the IPO approval process by introducing an "extended audit" to cover a company's assets, land, machinery, receivables and liabilities in greater detail than a conventional statutory audit.

Under the proposed system, an issuer would submit its IPO application to the stock exchanges, with a copy to the BSEC. The exchanges would conduct the initial scrutiny and raise necessary queries with the issuer, while the commission would give the final approval.

Acknowledging the current weak investor confidence, Mr Khan said the regulator would not interfere in the normal movement of the capital market or seek to artificially support it.

"The market will run on its own strength," he said.

The commission would investigate unusual trading or price movements and take action if irregularities are detected, he said.

Mr Khan said the regulator's role was not to increase the market index or turnover, but to ensure a fair, transparent and orderly market and protect investors.

He said structural reforms, quality listings and modern market infrastructure were essential to restoring confidence among local and foreign investors.

The BSEC chief also said the board of the Central Counterparty Bangladesh Limited (CCBL) is expected to be reconstituted within a month, paving the way for the long-delayed launch of its operations as a clearing company. He said he expected the CCBL to become operational within a year and that it would strengthen risk management and automate clearing and settlement processes.

The regulator is also targeting the introduction of T+1 settlement by the end of this year. A roadmap has been prepared following discussions with the Dhaka Stock Exchange (DSE), the Chittagong Stock Exchange (CSE), the Central Depository Bangladesh Limited (CDBL) and foreign custodian banks.

Moreover, the securities regulator is looking to expand the bond market by reducing fees and encouraging issuers to list bonds on the main board.

Mr Khan said BRAC Bank was planning to issue a Tk 10-billion social bond on the condition that it would be listed on the DSE main board.

"We want every bond to be listed on the main board," he said.

He expressed optimism that a significant number of bonds will be listed on the main board over the next year, creating investment opportunities for mutual funds, merchant banks and other institutional investors.

Surprise inspections

The regulator will strengthen surveillance of brokerage houses through risk-based and surprise inspections rather than relying on penalties.

"Surprise inspection is very important. Both the DSE and we believe that surprise inspections should be conducted regularly, not after five years," Mr Khan said.

The regulator will also examine whether large orders or repeated transactions are being used to manipulate stock prices. Mr Khan said placing a large order by itself was not illegal, but a series of transactions aimed at influencing prices could constitute an offence.

DSE Chairman Mominul Islam said the market had long been considered "overly regulated," preventing it from developing according to its own dynamics. The exchange is working to introduce scrip netting and bring technological changes to its matching engine and order management system, he said. The DSE is also preparing to launch trading in open-ended mutual funds and upgrading its website to attract institutional and foreign investors.

DSE Managing Director Nuzhat Anwar said much remained to be done to improve governance among listed companies, adding that the DSE and the BSEC were working in coordination on investor protection, margin requirements, Consolidated Customer Accounts and IPOs.

DSE Director Richard D'Rozario stressed the need for stronger surveillance to detect irregularities at an early stage.

DSE Director Minhaz Mannan Emon said global economic uncertainty, including the oil market crisis, was affecting Bangladesh's capital market among other factors. He called for coordinated efforts among the regulator, exchanges and market participants to address the challenges facing the secondary market.

US oil company North American Blue Energy Partners will take over some oilfields previously controlled by several Chinese companies ​and a Russian firm, two US officials told Reuters on Monday.

The takeover will be part of a sweeping oil production agreement that President ‌Donald Trump announced with Venezuela, they said.

The projects were among 14 contracts newly granted to US-backed North American Blue Energy Partners, according to the officials. NABEP was previously owned by US oil tycoon Harry Sargeant and is now controlled by Venezuelan businessman Alejandro Betancourt.

"Venezuela is blessed with an abundance of natural resources, hardworking people and untapped potential," Betancourt said in a statement, confirming the deal. "This ​transaction will unleash that potential to the great benefit of both Venezuelans and Americans."

NABEP said it will have operating control of the business and the ​US government will have holding rights to a 35% stake in the company, alongside "preferential access" to 20% of the company's production ⁠at cost.

The White House said NABEP has also granted the US Department of State the right of first refusal to purchase the remaining 80% of its production.

Last ​week, Trump announced that the US had secured access to some 64 billion barrels of Venezuela's proven oil reserves through a partnership with private business.

The arrangement gives US companies a ​foothold in some of Venezuela's strategically important oil assets while displacing Chinese and Russian interests that have long played a major role in the country's energy sector. It also gives Washington a direct role in determining who produces and sells Venezuela's oil, as the Trump administration seeks to reshape the country's oil industry and bring its vast reserves closer to US economic and geopolitical ​interests.

The US will also have veto power over NABEP's board and directors and has stipulated that a majority of the board must be American citizens, the White House ​added.

NABEP is expected to control a total of 17 projects in Venezuela that it plans to develop and ultimately use to supply oil to the US Fourteen of those projects will ‌be newly ⁠granted by the Venezuelan government, the officials said.

Five of the 14 fields have been operated by Chinese companies under a model promoted by then-President Nicolas Maduro, while one was previously operated by a Russian company, the officials said.

Two of the projects have been operated by China Concord Resources, which was sanctioned by the US in 2019 for Iran-related activity. Another project was operated by Sinopec and another by China National Petroleum Corp, the officials said.

"Not only are we opening up new opportunities for the US government ​to benefit and for US operators to ​benefit, we are opening up the ⁠United States as the market for this oil which was previously being sent to China," the official said.

Two other projects were operated by affiliates of Alex Saab, a former close associate of ousted Venezuelan President Nicolas Maduro who is currently being held ​in US custody, the officials said.

Another oilfield was linked to a nephew of Maduro's wife, Cilia Flores, the officials said.

Trump ​told reporters earlier on ⁠Monday that the US was taking out "millions and millions of barrels of oil" that is currently being shipped to refineries in Texas and Louisiana, among other locations. He is to meet oil and gas retailers and refineries on Tuesday.

The officials said talks between Venezuela's interim authorities and representatives of the 2015 National Assembly are aimed at restoring a measure of ⁠constitutional order ​and addressing legal questions surrounding the country's transition.

The Trump administration views the 2015 assembly as the last ​Venezuelan legislative body elected and operating under the country's constitution, although it has no formal governing power.

One official said reaching an agreement with the 2015 assembly could provide a constitutional and legal basis for ​the broader transition, including economic decisions such as the revival of Venezuela's oil industry.

Bangladesh's international bandwidth demand and the need for new investments is rising rapidly, but delays in deciding on new submarine cable connections could create a major capacity crunch by 2028, industry stakeholders warned at a workshop today (31 August).

The country's international bandwidth use, now about 13.5 terabits per second (Tbps), is projected to reach 19.1 Tbps in 2027 and nearly 27 Tbps in 2028, according to data presented at the event.

The Telecom and Technology Reporters Network Bangladesh (TRNB) organised the workshop titled "The need for new submarine cables to protect digital sovereignty and meet future bandwidth demand", in Dhaka yesterday.

International bandwidth use has increased nearly 260-fold over the past 13 years. It rose from just 50 Gbps in 2013 to 0.76 Tbps in 2018, 1.78 Tbps in 2020, 4.2 Tbps in 2022, 6.86 Tbps in 2024 and about 13.5 Tbps in 2026.

The demand could reach 54 Tbps by 2030, 305 Tbps by 2035 and 432 Tbps by 2036, according to the projections.

Bangladesh currently relies mainly on two government-owned submarine cables, SEA-ME-WE-4 and SEA-ME-WE-5, with capacities of 4.6 Tbps and 2.5 Tbps, respectively. Part of the remaining demand is met through bandwidth imported via International Terrestrial Cable (ITC) operators.

Bangladesh also has relatively few international submarine cable connections compared with regional peers. India is connected to 19 cables, Malaysia to 23, Thailand to 12 and the Philippines to 19, while Bangladesh's main connections currently number only two.

This leaves the country vulnerable to pressure on international internet services if a cable faces faults, maintenance or other disruptions, participants said.

Although the government's third submarine cable, SEA-ME-WE-6, is expected to add capacity, further expansion will be needed in the long term. SEA-ME-WE-4 is also scheduled to reach the end of its operational life in 2030.

Industry stakeholders see approval for privately owned submarine cables as a potential solution. They estimate that proposed cables could add around 51 Tbps of capacity, taking the country's total capacity to about 67 Tbps.

Mohammad Aminul Hakim, chief executive officer of Metacore Subcom Ltd, said private submarine cables could increase competition in the international bandwidth market and reduce dependence on bandwidth imported through ITCs.

He also said the proposal could create scope for lower internet prices.

Mashiur Rahman, chief executive officer of C-Data Communications Ltd, and Mahmud Shahed, project lead at Metacore Subcom Ltd, made separate presentations on Bangladesh's submarine cable infrastructure, future bandwidth demand and the need for new investment.

Stakeholders said planning, financing, constructing and commissioning submarine cables take several years. Waiting until demand and shortages become apparent could therefore delay the availability of required capacity.

They said Bangladesh should start planning new international connections now, considering demand beyond 2030.

India's economy grew 7.8% year-on-year in the April-June quarter of 2026, beating market expectations and the Reserve Bank of India's 7% forecast, government data showed today (31 August).

Growth in the first quarter of the 2026-27 financial year, however, moderated from a revised 8.6% in the previous quarter. Strong investment and manufacturing activity helped offset weakness in the mining sector.

The latest figures were released by India's Ministry of Statistics and Programme Implementation (MoSPI).

India's exemplary GDP growth of 7.8% during Q1 of FY 2026-27 is a herculean feat.

The collective strength of our people ensured India delivered such growth despite oil price shocks and supply chain issues in the midst of global uncertainties.

Doomsayers were doomed and India…

— Narendra Modi (@narendramodi) August 31, 2026
Gross value added (GVA), which excludes indirect taxes and subsidies, rose 8.2% during the quarter. Manufacturing grew 9.2%, while financial services expanded 12.1%, supported by strong bank credit growth.

Investment increased nearly 12%, while private consumption grew 7.1%.

The data underline the resilience of India's domestic economy despite global economic uncertainty, high energy prices and geopolitical tensions linked to the conflict in West Asia.

The pace of expansion keeps India among the world's fastest-growing major economies. Analysts have also raised their full-year growth forecasts to around 7% amid stronger investment, easing inflation and resilient domestic demand.

Prime Minister Narendra Modi described the 7.8% growth in the first quarter as a "herculean feat".

In posts on X, Modi said the performance reflected the "collective strength and resilience" of the Indian people despite oil price shocks, supply chain disruptions and global uncertainties.

In another post, he wrote: "Doomsayers were doomed and India bloomed…yet again!"

Investor confidence in Bangladesh's stock market is weakening as persistent selling pressure, weak fresh fund inflows and concerns over the economic outlook continue to weigh on market activity.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), fell another 16 points today (31 August) to close at 5,598, taking its total loss to 306 points, or nearly 5%, in just 13 trading sessions. The index also slipped below the 5,600-mark for the first time in around two months.

According to EBL Securities' daily market commentary, the downbeat capital market extended its negative trajectory despite brief recovery attempts by bargain hunters. Persistent domestic headwinds and a lack of fresh positive catalysts continued to weigh on investor sentiment.

Although the market staged intermittent recovery attempts, the indices failed to sustain the momentum as selling pressure regained dominance in the latter half of the session, reflecting weak investor conviction across the market, the brokerage said.

Trading activity has also plunged. Daily turnover on the DSE fell 61%, or Tk734 crore, over the past 18 trading sessions, from Tk1,211 crore on 4 August to Tk477 crore today.

The DS30 index declined 9 points to 2,113, while the DSES index fell 4 points to 1,124. Of the 391 companies and mutual funds traded today, 192 declined, 128 advanced and 69 remained unchanged.

Market participants say the lack of fresh or net fund inflows is one of the biggest challenges facing the market. Much of the current trading is driven by existing investors reallocating funds rather than new money entering the market.

As a result, buying pressure remains too weak to sustain a recovery. They said a durable market rally requires a steady flow of fresh funds; otherwise, selling pressure can quickly overwhelm buying interest, even in fundamentally strong stocks.

The DSEX had earlier climbed from around 5,200 points to nearly 5,900, but failed to sustain the momentum. The recent correction has further increased uncertainty over the market's near-term direction.

The weakness comes despite bank deposit and lending rates starting to decline, while yields on government treasury bills and bonds are also moving downward. Under normal circumstances, this could make equities more attractive, but investors have yet to shift significant funds into the stock market.

Market participants said many institutional and large retail investors are staying on the sidelines. While some have reduced their equity exposure, others are waiting for lower prices before making fresh investments. Meanwhile, some retail investors are selling shares over fears of further losses, adding to the selling pressure.

Ongoing gas and electricity shortages are also weighing on investor sentiment. Many manufacturing companies are operating below capacity due to inadequate gas and power supplies, raising concerns over production, sales and profitability in sectors such as textiles, ceramics and plastics.

EBL Securities also highlighted concerns over the short-term market outlook amid the gas and power crisis as a factor negatively affecting investor sentiment.

Increased regulatory scrutiny is another source of caution. The DSE is investigating several listed companies, while the Bangladesh Securities and Exchange Commission (BSEC) has intensified spot inspections of market institutions.

Market participants said stronger regulatory oversight is positive in the long run as it can improve transparency and accountability. However, a series of investigations and regulatory actions could make investors cautious in the short term, especially amid weak liquidity.

The Tk775 crore rights issue of United Commercial Bank (UCB) could further strain liquidity, as some investors may sell existing shares to raise funds for the issue, increasing selling pressure in the secondary market.

However, they do not see the current weakness as the start of a prolonged downturn. Investor interest could return if uncertainty eases, fresh funds enter the market and fundamentally strong stocks become attractive at lower valuations.

For now, the 306-point fall in the DSEX in 13 sessions and the 61% decline in turnover over 18 sessions indicate a significant deterioration in market liquidity and investor confidence.