Background of Icb
CHAPTER –TWO
BACKGROUND AND OVERVIEW OF ICB
2.1. Historical Background of ICB
Investment Corporation of Bangladesh (ICB) is an investment bank. An Investment Bank is a financial institution which mobilize fund from the surplus economic units by selling securities and deployed funds to the deficit economic units also by buying or underwriting share and securities.
After liberation in view of social economic changes, the scope for private sector investment in the economy was kept limited by allowing investment in projects up to Tk. 2.5 millions. The new investment policy, which was announced in July, 1972 provides for an expanded role of private sector by allowing investment in a project up to Tk. 30 millions. The ceiling has further being raised to Tk. 100 millions in spite of the adequate facilities and incentives provided to the private sectors encouraging response was not for the coming. One of the reasons among other was the lack of institutional facilities, which provides underwriting support (Like former ICB) to industrial enterprise that was required to raise much need equity fund. Thus, the need for reactivation for capital market, stock market was keenly feel.
In the received investment policy, which was announced in December, 1975, Government announced its decision reactivate the stock exchange and examine the question of recreation of Investment Corporation of Bangladesh. Accordingly a committee of officials examined the matter and recommended for creation of ICB. After that recommendation ICB established on the 1st October 1976, under “The Investment Corporation of Bangladesh Ordinance-1976” (No. XL of 1976).
The establishment of ICB was a major step in series of measures undertaken by the Government to accelerate the pace of industrialization and to develop a well organized and vibrant Capital Market particularly securities market in Bangladesh. It created to the need of institutional support to meet the equity gap of industrial enterprise
BACKGROUND AND OVERVIEW OF ICB
2.1. Historical Background of ICB
Investment Corporation of Bangladesh (ICB) is an investment bank. An Investment Bank is a financial institution which mobilize fund from the surplus economic units by selling securities and deployed funds to the deficit economic units also by buying or underwriting share and securities.
After liberation in view of social economic changes, the scope for private sector investment in the economy was kept limited by allowing investment in projects up to Tk. 2.5 millions. The new investment policy, which was announced in July, 1972 provides for an expanded role of private sector by allowing investment in a project up to Tk. 30 millions. The ceiling has further being raised to Tk. 100 millions in spite of the adequate facilities and incentives provided to the private sectors encouraging response was not for the coming. One of the reasons among other was the lack of institutional facilities, which provides underwriting support (Like former ICB) to industrial enterprise that was required to raise much need equity fund. Thus, the need for reactivation for capital market, stock market was keenly feel.
In the received investment policy, which was announced in December, 1975, Government announced its decision reactivate the stock exchange and examine the question of recreation of Investment Corporation of Bangladesh. Accordingly a committee of officials examined the matter and recommended for creation of ICB. After that recommendation ICB established on the 1st October 1976, under “The Investment Corporation of Bangladesh Ordinance-1976” (No. XL of 1976).
The establishment of ICB was a major step in series of measures undertaken by the Government to accelerate the pace of industrialization and to develop a well organized and vibrant Capital Market particularly securities market in Bangladesh. It created to the need of institutional support to meet the equity gap of industrial enterprise