DSE for changing perception of stock exchange function

FE Report
The Dhaka Stock Exchange (DSE) Thursday stressed the need for changing the perception of function of stock exchanges and focus on companies' performance.
DSE member director Shakil Rizvi said this at a press briefing on 'present stock market scenario' on the DSE premises. DSE managing director Swapan Kumar Bala and shareholder director Sharif Anowar Hossain were present, among others.
Mr Rizvi said the exchange is a trading platform, and discussions regarding the capital market and investors' concentration should mainly be focused on the companies' performance.
"Previously our concentration was focused on as to how the market can go up following the investors' demand. But it was wrong. The function of stock exchange is to look into whether trading is being done as per rules."
He said the market force should be based on the companies' performance.
Swapan Kumar Bala said there is no reason to lose confidence on the stock market, as it is going on its own way.
He said they regularly sit with the capital market stakeholders to discuss various issues. They have already sat with the Chittagong Stock Exchange (CSE) and DSE top brokers to discuss about increasing trading volume.
He said they also discussed with CSE about liquidity shortage in the market and how to solve it within the shortest possible time, finding out strategic investors, stepping up monitoring of listed companies, and allowing stock brokers to open new branches.
They also discussed with DSE top brokers about implementation of trading settlement to two days from existing three days.
"The reduced trading cycle - T+2 - will be introduced from April 16, replacing the existing T+3 trading cycle to increase liquidity flow in the capital market," he said.
Mr Swapan Kumar said DSE is also working to set up new automation trading software. "We have already signed agreements with two US-based companies - NASDAQ OMX and FlexTrade Systems - to renew our existing trading system with a next generation, world-leading trading platform."
"It is user-friendly software, and will run with any kind of hardware. If everything goes well, the new trading software will 'go live' from October next," he said.
Replying to a query, the DSE MD said there is a verbal instruction for not publishing initial public offering (IPO) prospectus on the DSE website before final approval by the securities regulator.
He said to remove hassles of cheque handling and reduce IPO subscription time, IPO subscription fees will be received through brokerage houses within a short time.
"The Bangladesh Securities and Exchange Commission (BSEC) will conduct a pilot project on collecting IPO subscription fees through brokerage houses by the end of April. After successful test run, it is likely to be launched in May," he added.
In another query, Mr Shakil Rizvi said the Bangladesh Bank's initiatives regarding the capital market are good, but the central bank should not panic the investors.
The capital market-related decisions should come after discussion with the securities regulator, he opined.