User:Shahiddumba/sandbox

Merchant Banks in Bangladesh: Challenges ahead
'' === Dr. Mosharraf Hossain FCA, Mohammad Shahidul Islam ACA'' ===

Abstract: Merchant bank plays a pivotal role in channelizing the financial surplus of the society into productive investment avenues. In a developing nation like Bangladesh merchant bank has an enormous responsibility in the development of capital market. The resources raising functions remains to be the primary business of a merchant banker. Besides, in well organized market, merchant bank acts as a market maker in bringing sustainability into capital market of a country. The aim of this paper is to address the role of merchant banks in the rising capital market especially focus on the challenges of merchant banks in doing their business in the stringent legal framework. As a result of recent initiatives of Securities and Exchange Commission of Bangladesh there has been considerable controversy regarding tax rate of merchant banks, someone utters 37.5% whereas regulators' stand is 42.5% as merchant banks are doing margin loan services. This paper also tries to examine financial performance of top ten merchant banks in Bangladesh.