IT-related services, facilitation of share trading of de-listed cos aimed at
Mohammad Mufazzal
The country's premier bourse has planned to launch two separate
subsidiary companies to provide IT related services and facilitate share
trading of de-listed companies, officials said.
The initiative has been taken as part of the move of Dhaka Stock Exchange (DSE) to enhance the revenue of the exchange.
Of
the two subsidiaries, one will be 'Alternative Market for Trading' to
facilatate the trading of companies which remain unlisted and had been
de-listed earlier from the main bourse.
The other subsidiary company will provide IT related services to the TREC (trading right entitlement certificate) holders.
A DSE senior official said the premier bourse is working to formulate the proposals for launching the subsidiary companies.
"The
proposed Alternative Market for trading will be the revised form of the
existing OTC (over-the-counter) market. The unlisted companies having
minimum paid-up capital worth Tk 50 million may be allowed for trading
at that market," the DSE official said on the condition of anonymity.
Presently, the shares of 66 companies, which earlier were de-listed from main bourse, are being traded at the OTC market.
Poor trading of those companies at the OTC market is another reason behind forming Alternative Market for Trading.
The
DSE is working to launch another subsidiary company for providing IT
related services following the practice of other renowned stock
exchanges across the world.
DSE official said it's a huge job for the exchange to provide the IT related services required for stock brokers and dealers.
"The
area of IT services will be increased more when new products will be
introduced in the market. That's why the DSE has planned to launch a
separate subsidiary company to ensure those services," the official
said.
He said after getting license of a subsidiary company the
premier bourse will get IT service and products on discount from
international vendors.
"As a result, TREC holders will also be
benefited if the proposed subsidiary company is launched at the premier
bourse," the DSE official said.
DSE Managing Director Dr. Swapan
Kumar Bala said their board has given its consent in principle to work
for the proposed subsidiary companies.
"The DSE is working
internally to formalise the proposals of the subsidiary companies. We
will have to fix the objectivity of the companies by sitting with the
advisors," Mr. Bala said.
He said after taking board approval, the proposals will be sent to the BSEC for regulatory approval.
"Our detail plan will be cleared if our plans are matured," DSE managing director added.
In
this regard, a policy maker of the Bangladesh Securities and Exchange
Commission (BSEC) has said the revenue of the premier bourse will be
enhanced if the proposed subsidiaries are launched.
"An important
portion of return comes from the subsidiaries of the renowned stock
exchanges in other countries," the BSEC policy maker said.
The BSEC is working to launch the clearing corporation for both the bourses.
After the inception of the corporation and proposed subsidiary company, the premier bourse will be only the trading platform.
mufazzal.fe@gmail.com
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