DSE not required to pay for licensing
Technical offer of Chinese consortium to buy shares
Mohammad Mufazzal | Tuesday, 10 April 2018
The technical offer of Chinese consortium includes 10-year licensing for use of SZSE (Shenzhen Stock Exchange) trading system application software by Dhaka Stock Exchange (DSE).
The cost of such trading system improvement service will stand at $9.0 million, out of a total offer worth $37 million.
But the DSE will not be required to pay for total offer of Chinese consortium, according to market insiders.
The free Chinese technical offer needs DSE shareholders' approval and the prime bourse will seek the endorsement in its extra-ordinary general meeting (EGM) to be held on April 30 next.
DSE will also seek its shareholders' approval of selling exchange's 25 per cent shares to the Chinese consortium comprising of Shenzhen Stock Exchange and Shanghai Stock Exchange at Tk 22 each.
After taking shareholders' approval, the DSE will send the proposal to the securities regulator.
The consortium will also provide consulting services for development of latest version of trading system on the DSE. The manpower required for latest version of trading system will also be trained without any fee by the consortium.
The DSE will also be offered 10-year licensing for use of SZSE surveillance system application software including e-mail and telephone-based support services worth $6.5 million. The training required for running application software will be provided free by the consortium.
The Chinese Consortium's BPM (Business Process Management) consulting plan includes 10-year licensing for use of SZSE BPM system infrastructure components including e-mail and telephone-based support services by the DSE.
The premier bourse will also avail 10-year use rights of SZSE Bond Tender and Distribution System and support services via e-mail and telephone.
The consortium will offer 10-year licensing for use of SZSE information disclosure system infrastructure components including e-mail and telephone -based support services. Required number of employees will also be trained free along with providing consulting services for development of information disclosure on the DSE.
The DSE will obtain 10-year licensing free for use of FDEP (Financial Data Exchange Platform) software including e-mail and telephone-based support services.
Another right of using application software of Financial Cloud Computing and further software subscription will be offered to the DSE for 10 years.
An official of the country's prime bourse said the DSE now has only trading and surveillance systems.
"Many services offered by the Chinese consortium are not available in the DSE. The Exchange will take decision which services can be availed for further development of the DSE," the official said.
The DSE managing director KAM Majedur Rahman said the technical offers of Chinese Consortium will be availed through SZSE (Shenzhen Stock Exchange) as it is the leading one in the consortium.