BSEC body gets one week more to give report

FE Report
The securities regulator has extended the timeframe by one week to submit report on the Chinese consortium's proposal for being a strategic partner of Dhaka Stock Exchange (DSE).
Bangladesh Securities and Exchange Commission (BSEC) formed a four-member committee on February 22 after receiving the proposal on strategic partner from the premier bourse.
The BSEC committee was supposed to submit its report to the commission by Wednesday (March 7).
"BSEC extended the timeframe by one week, as the committee's report was not completed within the given timeframe," said Mohammad Saifur Rahman, BSEC executive director and spokesperson.
While asked, a BSEC official concerned said to finalise the report the committee needs to examine more supporting papers, submitted by the premier bourse.
"DSE submitted the supporting papers on Wednesday following the committee's requirement. After examining the papers the BSEC committee will submit report to the commission within the extended timeframe," he added.
The BSEC committee recently sought clarification from DSE management on conditions for a foreign firm to become a strategic partner of DSE.
Following the queries on some clauses of the Chinese consortium's proposal, DSE submitted its clarification to BSEC on March 4.
In the clarification, DSE excluded some conditions of the consortium after receiving its consent.
The BSEC officials concerned said they just wanted clarification on some conditions of the Chinese consortium that contradict
with the existing rules and regulations.
"But DSE excluded such conditions from the proposal. It proves that our queries were valid," a BSEC official said.
He further said the price that the Chinese consortium offered for the total 25 per cent shares of DSE may drop after adjustment of dividend by the bourse.
In this regard, a DSE official said the price (Tk 22 per share) was offered based on the unaudited statement of the bourse for the year ending on June 30, 2017.
"The offered price may drop by Tk one per share, if the DSE shareholders decide to receive dividend in its upcoming AGM. Otherwise, the price will not change."
He also said there is no legal bar in fine-tuning a proposal accepted from a strategic partner.
"Moreover, we have worked for removing the complexities in the Chinese bid to ease the regulator's job," the official added.
As per the DSE clarification, the Chinese consortium has agreed to sign share-purchase agreement according to the law of Bangladesh. The consortium earlier had proposed to conclude the agreement as per the UK law.
Among others, the consortium has also excluded the condition of taking their approval for various decisions, like - issuing new shares, changing the number of DSE directors, and achieving any intellectual property such as software, patent and other technologies.
On February 10, the DSE board of directors approved the Chinese consortium's proposal submitted for purchasing the exchange's total 25 per cent shares at a price of Tk 22 each.
The Chinese consortium comprises Shenzhen Stock Exchange and Shanghai Stock Exchange.
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