OTC transaction jumps high

Transaction on the over-the-counter (OTC) market of Dhaka Stock Exchange (DSE) rose around 300 per cent during the fiscal year (FY) 2014-15 compared to previous FY, officials said.
The shares of 'Z' category the companies, which were delisted from main bourse, are traded on the OTC market.
The securities regulator formally launched the OTC market on September 6, 2009 in an effort to facilitate the trading of de-listed and non-listed companies.
According to DSE information, above 3.4 million shares worth over Tk 353.80 million were traded on the OTC market during the FY 2014-15.
On the other hand, shares worth above Tk 87.93 million were traded on DSE OTC market during the FY 2013-14.
As a result, share transaction rose 302 per cent or above Tk 265.80 million in the FY 2014-15 compared to transaction observed by the OTC market during the FY 2013-14.
Transaction executed on OTC market during a FY is very insignificant compared to single day transaction observed by the main bourse.
Daily trade volume observed by the premier bourse is around Tk 4.5 billion, whereas the OTC market observed a trade volume worth only Tk 353.80 million during the FY 2014-15.
Presently, there are 66 companies on the OTC market. Among the companies, shares of 14 companies are dematerialised or demat. Remaining 52 companies are yet to convert their paper shares into demat form.
After launching of OTC market, 44 companies, including United Commercial Bank (UCB), were de-listed from main bourse and shifted to the OTC market.
The UCB was de-listed from main bourse due to suspension of trading following the cases filed with the High Court.
Later, the cases were resolved and the company was re-listed with the main bourse.
Another company Wata Chemicals, which was traded on OTC floor, was also re-listed with the main bourse.
The DSE recently moved to accelerate trading on the OTC trading floor.
In this regard, a DSE committee is working to file a report on as to how the OTC market can be vibrant.
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