World Bank to support the main bourse

The World Bank (WB) has shown interest to be strategic partner of the Dhaka Stock Exchange (DSE) as part of completing the exchange's demutualisation process.
The World Bank expressed its interest at a meeting held with the DSE management on Tuesday.
A joint team of World Bank and International Finance Corporation (AFC) conducted discussion with the securities regulator and DSE.
The discussion came as part of their mission started in June, 2017 in eight countries, including Bangladesh, for the development of capital markets.
"During the discussion at the Tuesday's meeting, the World Bank expressed its interest to be strategic partner of the premier bourse," a DSE source said.
In its reply, the DSE told the World Bank that the timeframe of inclusion of strategic partner is yet to cross the deadline. So, the discussion can go on, the DSE source said quoting the meeting participants.
A top DSE official said the World Bank wants to take part in development activities of the premier bourse DSE.
"They have shown interest to extend support to the DSE in capital market development," the DSE official told the FE.
The objective of the World Bank and IFC's joint mission is to work with derivatives, bond and central counter party (CPP) along with formulation of corporate governance guideline. Besides, the mission also wants to work jointly with Asian Development.
The country's premier bourse turned into a demutualised stock exchange on November 21, 2013.
According to the demutualised scheme, the DSE consists of above 1.80 million shares of Tk 10 each totaling above Tk 18.03 billion as paid-up capital of the entity.
As per the demutualisation scheme, the DSE will have to float its 25 per cent shares to strategic investors.
On December 9, 2015, the securities regulator directed the DSE to get strategic investor within a year as per the Demutualisation Act, 2013.
The commission later extended the deadline to March 31, 2018 following a plea from the DSE.
A number of foreign financial organisations and local firms earlier showed interest in investing in the DSE to become its strategic investors.
A consortium of World Bank Group's International Finance Corporation, German Development Bank KfW, Commonwealth Development Corporation, US-based NASDAQ, Sweden-based Brummer & Partners and Bangladeshi Square Group expressed primary interest to be the strategic partners.
The local companies which have also showed interest to be strategic partners are Southeast Bank, One Bank and LankaBangla Finance.
But the securities regulator said the domestic companies will not be allowed to be strategic partner if they don't have qualifications regarding the bourse's further progress.
As per the demutualisation scheme, the board of the demutualised exchange will comprise of 13 members.
The DSE board will consist of seven independent directors, five shareholder-directors, including one foreign strategic investor, and the chief executive officer who will have voting rights.
Presently, the post of strategic partner remains vacant and it is running on 12 members.
Each of the 250 DSE members is entitled to get more than 7.2 million ordinary shares of Tk 10 each.
The DSE shareholders primarily got 40 per cent of their stakes along with receiving TREC (trading rights entitlement certificate) certificates.
And the remaining 60 per cent of the shares were transferred to a block account and kept for the TREC holders, strategic investors and individuals.
Among the 60 per cent stakes, one or more foreign strategic partners will be able to purchase 25 per cent and local institutional investors and individuals will be able to purchase the remaining 35 per cent stakes.

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