The securities regulator has taken an initiative to make the OTC (over-the-counter) market vibrant through the reforms of rules.
The Bangladesh Securities and Exchange Commission (BSEC) has formed a three-member committee to prepare a report on possible changes of rules for the OTC market.
The BSEC committee led by its director Md. Mansur Rahman will submit their report to the commission within 45 working days.
The regulatory move came following the DSE's proposal regarding changing existing rules of the OTC market.
The DSE's proposal regarding reform of the OTC market was submitted to the BSEC in March last.
Later, the securities regulator took the decision regarding reform of the OTC market and finally a committee was formed on September 10, according to a BSEC committee member.
Md. Shakil Rizvi, a DSE director, said the complexities of the OTC market included the non-compliances and paper based share of the compliances.
"The companies of the OTC market have not yet converted their paper shares into electronic ones. That's why the transactions in the OTC market are not easy like the main bourse," said Rizvi, also a former DSE president.
He said the OTC market should play the role of a mediator in case of hand over of shares by the parties of non-listed companies.
"Sometimes, one party may not trust another one during transfer of shares. In that case, the OTC market can be a mediator to conduct proper transfer of their shares," Rizvi said.
The DSE sources said the companies which do maintain communication with the securities regulator and stock exchange may be excluded from the OTC market.
There is no existence of some companies of the OTC market. Such companies also do not response to the regulatory queries.
Presently, a total of 66 companies are listed with the OTC market and some 32 companies try to comply with the securities rules.
The officials of the premier bourse said the companies which do not maintain communication may be excluded from the OTC market.
The OTC market started its operation in 2009 with the companies which were delisted from the main bourse due to their non-performance.
After inception of OTC market, two companies were shifted to main bourse following their improvement of the operation.
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