The merchant banks are likely to begin operation soon after the expected clearance from the Prime Minister's Office (PMO) in a few days, sources said.

The prime minister is learnt to have assured a quick disposal of the file lying with PMO for past three months.

The assurance came when the newly-elected Chairman of the Dhaka Stock Exchange (DSE) Md Rakibur Rahman informally met the prime minister to donate money on behalf of the exchange for her relief fund.

According to the sources, the prime minister has also agreed to sit with the DSE councillors to discuss ways and means to stabilise the stock market. The PM also expressed her concern at the present condition of the market, and hoped the government steps being taken would help create confidence among investors.

"All-out support will be given for the development of the market. The file will be released within the earliest possible time so that the merchant banks can start functioning," one source quoted the prime minister as telling DSE office-bearers.

Rakibur Rahman said DSE councillors hoped to meet the Prime Minister sometime after the December 15 three-nation business summit.

Meanwhile, formalities are being done to lift the circuit breaker as agreed at a meeting between the DSE and the SEC last week.

"We have already sent the proposal to SEC and we hope the circuit braker will be lifted within the next 10-15 days," Rakibur Rahman said.

In another development, the six-member DSE task force, headed by councillor Yussuf Abdullah Harun who is also FBCCI president, yesterday failed to come up with any concrete decision on automation.

The meeting sources said talks were continuing, and that they might reach a compromise solution by next week.

The task force, formed on December 29 to deal with already-delayed automation process, came up with a set of recommendations, approved by the new DSE Council for an amicable solution with the Tandem, the American firm doing the work.