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“The proposal will be placed before the higher authorities for the approval,” said an official adding that the size of the revolving fund will be about Tk 8.5 billion and the term will be five years.

“If there’s any crisis in the capital market, money can be used from this fund. Investment Corporation of Bangladesh (ICB) will take care of the fund,” the official said seeking anonymity.

In 2010, the capital market suffered a setback and went through a depression as shares of most of the listed companies suffered record losses in their prices and the capital market took a decade to bounce back.

Small investors lost their capitals and a large number of investors left the market losing huge money.

The government then formed a special fund to help the affected small investors with low-interest loans and special quotas on initial public offerings (IPOs).

After that, the fund remained idle for a long time. Now the fund is going to be converted into a 'revolving fund' to meet the special needs of the capital market, said the market insiders.

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