Feasibility of textile sector in capital market
AuthorHossain, Md. Mozammal
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IDLC Finance Limited is the leading non banking financial institution that started its journey in 1985 as pioneer in lease financing. Gradually during last 25 years of operations they provided the Bangladeshi corporate and retail customers in various forms of financial services which are new in kind in Bangladesh. At the moment they offer financial services under four divisions. Firstly, Personal Division that offers deposit schemes, home loan, car loan, personal loan etc. Secondly, SME Division which provides lease, term loan, factoring facilities to small and medium sized enterprises in Bangladesh. Thirdly, Corporate Division which provides wide range of services to large corporations of Bangladesh such as lease financing, sale and lease back, term loan, project financing and many more. And the fourth division of IDLC Finance Limited is Capital Markets Division. Under this division IDLC offers to its client merchant banking and brokerage services of all sorts. The operations of this division are conducted through two subsidiaries IDLC Investment Limited is the subsidiary which provides the merchant banking services. And IDLC Securities is the subsidiary which provides the securities services.Merchant Banking is one of the key capital markets service provided by IDLC Finance Ltd. They are the first Bangladeshi Financial Institutions to receive merchant banking license in January, 1998. And They Started Merchant Banking operation from 1999. Under the merchant banking wing the services such as issue management, portfolio management and Corporate Advisory Services are provided. During 2010 SEC came up with the law which required all the financial institutions to make the merchant banking operation separate. As per requirement of the Securities & Exchange Commission (SEC), IDLC formed a separate subsidiary on May 19, 2010 in the name of ‘IDLC Investments Limited’, in order to transfer its existing merchant banking activities to the newly formed entity. IDLC applied to SEC to transfer the existing merchant banking license of IDLC Finance Limited to IDLC Investments Limited. Accordingly, IDLC Investments Limited has started its operations from August 16, 2011 to offer merchant banking services to both our individual and institutional clients. Lastly this report contains overview of IDLC finance and investments, job description, findings and analysis, detailed study on textile sector, recommendation and calculation.