DSE launches OTC market
Monday, 7 September 2009
FE Report
The Dhaka Stock Exchange (DSE) has launched the over-the-counter (OTC) market-a separate trading floor-- to facilitate trading of the non-listed and de-listed companies.
Shares of companies that have been de-listed from the premier bourse will be placed on the OTC market in the first phase. In the next phase, shares of non-performing and non-operational companies that will be removed from the main board will be traded on the new OTC floor.
"It is a milestone for the stock market," Securities and Exchange Commission chairman Md Ziaul Haque Khondker said while inaugurating the OTC market at the DSE main building Sunday.
"It is better late than never," he said as the DSE introduced the DSE after long time.
Binning doubt over the OTC market's successes, he said, "I believe, transparency and efficiency will yield positive results."
He said introduction of OTC market will increase integration between Dhaka market and other international capital markets, most of which have separate OTC market.
SEC member Mansur Alam said, "The OTC market is just like trading of the paperless shares which will take at least 16 days to settle."
"The SEC will introduce relevant regulations governing the OTC market in future," he said.
About those Z-category companies numbering 44 whose share trading remained suspended over the last couple of months, Alam said, "The SEC will take decision about them soon."
Referring to the OTC market of Chittagong Stock Exchange, where no trading was held since its inception in 2004, DSE President Rakibur Rahman said the Dhaka OTC market will not be like CSE.
DSE senior vice president Saiful Islam was also present at the function.
DSE acting chief executive officer Satipati Moitra said, "Only unlisted or de-listed companies as designated by the SEC can apply for listing at OTC."
As per SEC directive issued today, all the de-listed companies from the secondary market will be listed with the OTC market, he added.
The Dhaka Stock Exchange (DSE) has launched the over-the-counter (OTC) market-a separate trading floor-- to facilitate trading of the non-listed and de-listed companies.
Shares of companies that have been de-listed from the premier bourse will be placed on the OTC market in the first phase. In the next phase, shares of non-performing and non-operational companies that will be removed from the main board will be traded on the new OTC floor.
"It is a milestone for the stock market," Securities and Exchange Commission chairman Md Ziaul Haque Khondker said while inaugurating the OTC market at the DSE main building Sunday.
"It is better late than never," he said as the DSE introduced the DSE after long time.
Binning doubt over the OTC market's successes, he said, "I believe, transparency and efficiency will yield positive results."
He said introduction of OTC market will increase integration between Dhaka market and other international capital markets, most of which have separate OTC market.
SEC member Mansur Alam said, "The OTC market is just like trading of the paperless shares which will take at least 16 days to settle."
"The SEC will introduce relevant regulations governing the OTC market in future," he said.
About those Z-category companies numbering 44 whose share trading remained suspended over the last couple of months, Alam said, "The SEC will take decision about them soon."
Referring to the OTC market of Chittagong Stock Exchange, where no trading was held since its inception in 2004, DSE President Rakibur Rahman said the Dhaka OTC market will not be like CSE.
DSE senior vice president Saiful Islam was also present at the function.
DSE acting chief executive officer Satipati Moitra said, "Only unlisted or de-listed companies as designated by the SEC can apply for listing at OTC."
As per SEC directive issued today, all the de-listed companies from the secondary market will be listed with the OTC market, he added.