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Alternative Trading Board to 'woo new investors'

FE Report | July 16, 2020 00:00:00


Stock exchanges will have to play an active role to ensure the vibrant operations of Alternative Trading Board (ATB) launched to facilitate the growth of non-listed companies and other securities.

Discussants said this on Wednesday at an online training programme held to discuss the activities and prospect of the ATB.

They also said a successful ATB will enhance the exchange's revenue along with attracting foreign investments to the potential local companies.

Bangladesh Academy for Securities Market and the DSE Training Academy organised the programme moderated by Mohammad Rezaul Karim, a director of the securities regulator.

The Bangladesh Securities and Exchange Commission (BSEC) has already approved the rules for ATB to pave the way of listing of non-listed companies, any kind of bonds, debenture, sukuk, open-end mutual funds and alternative investment funds with the ATB.

The representatives of the securities regulator, Dhaka Stock Exchange and Chittagong Stock Exchange, Central Depository Bangladesh Limited (CDBL), different merchant banks, issuer companies and DSE Brokers Association of Bangladesh (DBA) attended the online training programme.

At the programme, they laid importance on fixation of brokerage commission, listing fee and the CDBL charge for the listing companies, bonds, open-end mutual funds, among other securities, with the ATB.

"Both the stock Exchanges will have to conduct active programmes on advertisement and public awareness to make the operations of the ATB successful," said Md. Mahbubul Alam, a BSEC executive director.

He said alternative investment scope will be created through the operation of ATB.

"Only the institutions and high net worth individuals should be inspired to make investments in the securities to be listed with the ATB," Mr. Alam said.

He said small investors should not be inspired to make investment in the ATB because this type of investment is riskier than the investments made in the securities listed with the main board.

In his keynote speech, the chief operating officer of Dhaka Stock Exchange (DSE) M. Shaifur Rahman Mazumdar focused on the prospect of ATB.

"The non-listed companies, among others, will have to apply for listing with the ATB. Their applications will be approved or cancelled within 30 days," Mr. Mazumdar said.

DBA president Sharif Anwar Hossain said the stock exchanges have the scope of enhancing their profits through the successful operation of the ATB.

"There are more than 0.1 million registered companies in the country. But there is no platform to determine the value of their shares along with conducting trading," Mr. Hossain said.

He said many fresh investors will come to the market once the operation of the ATB starts.

"The compliances will have to be ensured strongly in the ATB to create confidence among the investors."

The CDBL's managing director Shuvra Kanti Choudhury said the ATB is a time befitting initiative for the development of the capital market.

"Many small companies are doing good business. Fresh investment scope will be created following the listing of small companies with the ATB," Mr. Choudhury said.

mufazzal.fe@gmail.com


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