DSE assured of setting up separate co on CDS
Friday, 17 August 2007
FE Report
The Securities and Exchange Commission (SEC) Thursday gave an assurance to the Dhaka Stock Exchange (DSE) for establishing a separate company on Central Depository System (CDS).
The assurance came from the SEC Chairman Faruk Ahmed Siddiqi in a meeting with the DSE policy-makers.
The DSE proposed to open a separate CDS company to ensure the uninterrupted share transaction in daily share trading.
"Our proposed company will be a real-time online service provider in the CDS along with an automated clearing house," DSE CEO said.
He said the proposed company will be a listed company and the initial cost to establish the company is Tk 120 million.
The DSE took the move to set up the second CDS company in the backdrop of frequent disruption of the Central Depository Bangladesh Ltd (CDBL) which was set up in 2004.
The DSE high-ups- president Abdullah Bokhari, senior vice-president Ahmad Rashid Lali and Chief Executive Officer (CEO) Salahuddin Ahmed Khan met the SEC chairman for discussing the issue.
"We also discussed the proposed margin rules for merchant banks so that it could play a positive role to develop the market," a DSE source told the FE.
The SEC chairman asked the DSE to follow the legal aspects for setting up the second CDS company, a meeting source said.
The Securities and Exchange Commission (SEC) Thursday gave an assurance to the Dhaka Stock Exchange (DSE) for establishing a separate company on Central Depository System (CDS).
The assurance came from the SEC Chairman Faruk Ahmed Siddiqi in a meeting with the DSE policy-makers.
The DSE proposed to open a separate CDS company to ensure the uninterrupted share transaction in daily share trading.
"Our proposed company will be a real-time online service provider in the CDS along with an automated clearing house," DSE CEO said.
He said the proposed company will be a listed company and the initial cost to establish the company is Tk 120 million.
The DSE took the move to set up the second CDS company in the backdrop of frequent disruption of the Central Depository Bangladesh Ltd (CDBL) which was set up in 2004.
The DSE high-ups- president Abdullah Bokhari, senior vice-president Ahmad Rashid Lali and Chief Executive Officer (CEO) Salahuddin Ahmed Khan met the SEC chairman for discussing the issue.
"We also discussed the proposed margin rules for merchant banks so that it could play a positive role to develop the market," a DSE source told the FE.
The SEC chairman asked the DSE to follow the legal aspects for setting up the second CDS company, a meeting source said.