A four-member delegation of DSE led by its president, Mr. Md. Abdullah Bokhari met with the Governor of Bangladesh Bank Dr. Salehuddin Ahmed on March 19,2006. The delegation team included DSE Senior Vice President Mr. Ahmad Rashid, Vice President Mr. N.U.M.Olliullah and Chief Executive Officer Mr. Salahuddin Ahmed Khan. DSE placed several proposals to the Governor and invited his attention for giving due consideration to the proposals. Issues like monetary Policy and Cost Of Doing Business, Secondary Market For Treasury Bonds and security Investment Guideline For Financial Institutions were proposed. The delegation in its proposal appraised that current upward trend in general price level is mostly caused by high fuel price and also due to significant depreciation of Tk. against dollar which is making all imported goods and raw materials costlier. Squeezing money supply will bring little impact on the price level in the country. Rather, such policy will affect the economic growth and industrialization process. Cost of fund as evident in the recent interest rate behavior in the market will be higher, which will raise cost of doing business. The delegation team also requested to formulate comprehensive guidelines with provision for borrowing, lending against marketable securities keeping appropriate provisions and limits for operational activities, which at present is not in existence. The delegation team also opined that a vibrant and functionally capable secondary market for treasury bonds is essential which without removing the existing impediments wouldn't be possible. The key impediments amongst many others raised were refraining N-PDS from bidding in auction. Encouraging the CBs to maintain their Advance Deposit (AD) ratio properly, Bangladesh Bank to have a interest rate corridor through Repo/Re Repo auction,s tax at source (10%) - totally tax paid instrument thereon. It will relieve the banks from tax burden. Coupon maturity proceeds of the Treasury Bonds are to be credited to the beneficiary owners through the Primary Dealers (PDs), Long-term yield curve has to be created. Presently, there is no benchmark/yield curve because of the mismatching of yield between T-bills (7%) & T-bonds (12%), denomination price to be reduced to TK. 50,000 or below than that of existing TK.100, 000 and campaign for awareness program by training, workshop, wide demonstration.

The Governor of Bangladesh Bank virtually agreed with the proposals placed by the DSE delegation. He also agreed to formulate a committee for preparing guideline of Security Investment For Financial Institutions under Mr. Morshed Kuli Khan, Executive Director of Bangladesh Bank. Also agreed to form a joint action committee including the DSE and CSE to evaluate the proposals and do the needful in view of making the financial market policy framework harmonized.