OTC companies to be shifted to newly-introduced trading platforms

Most of the OTC (over-the-counter) companies are set to be shifted to the newly introduced trading platforms as part of the regulatory move to inject life into the companies' operations.
The Bangladesh Securities and Exchange Commission (BSEC) has already allowed the re-listing of four OTC companies with the main trading platforms of the bourses.
"We are working to bring back a large number of OTC companies to the newly introduced trading platforms. Now, it's not possible to speak about exact number of companies which will be shifted from the OTC platform," said a BSEC official.
He said on completion of the job they will be able to speak about the exact number of the OTC companies which will be shifted to the trading platforms.
Apart from the existing main trading platform, the bourses have introduced two trading platforms. The platforms are Alternative Trading Board (ATB) and SME board.
Presently, there are 66 companies in the OTC market. These companies previously were shifted to the OTC market following their dire straight in operations.
The official sources said, out of 66 OTC companies, some 21 are likely to be shifted to the ATB.
Another 19 companies are likely to be transferred to SME board and four will be re-listed with the existing main trading platform.
Asked, a DSE source said the securities regulator has already permitted the Wonderland Toys to be listed on the SME board.
"The boards of 19 companies will be restructured to bring back dynamism into their operations. We hope the regulatory move will facilitate the companies to restore investors' confidence to their operations," said the DSE official.
On February 4 last, the securities regulator allowed re-listing of four OTC companies with the bourses' main boards considering their improvements in business operations.
The companies are Tamijuddin Textile Mills, Bangladesh Monospool Paper Manufacturing Company, Paper Processing and Packaging and Monno Fabrics.
Previously, these companies were shifted to the OTC market from the main boards due to different reasons including their failure to hold AGM (annual general meeting) and disburse dividends.
The BSEC said it allowed four companies' re-listing considering their improvements in business operations and some measures taken to comply with different sections of the securities rules.
The securities regulator has also exempted the companies from some conditions of the exchange's listing regulations to facilitate their re-listing.
The securities regulator launched the OTC market on September 06, 2009 in an effort to facilitate the trading of the companies which will be de-listed from the main trading platform.
Later, many companies were shifted to the OTC market from the main boards following their poor business operations.
But the company's share trading at the OTC was not up to the market. After introduction of the platform, some companies including Wata Chemicals was re-listed with the main board considering its improvement in operations.
Apart from the re-listing of the OTC companies, the securities regulator and both the bourses are working for listing of small cap companies with the SME boards.
In early 2020, the Nialco Alloys, a manufacturer of grade bronze and brass ingots, submitted its IPO proposal to be listed with the SME board.
As per the prospectus, the company will raise a capital worth Tk 100 million through the SME board of the Chittagong Stock Exchange (CSE).
Two other small-cap companies -- Krishibid Seed and Annex Suites -- had also moved to raise capital through SME platform.
As per the agreement signed with issue manager, Krishibid Seed, a private limited company of Krishibid Group, will raise a capital worth Tk 150 million by offloading 15 million ordinary shares at an offer price of Tk 10 each under the fixed price method.
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