CSE moves to modernise OTC market

FE Report

The Chittagong Stock Exchange (CSE) has moved to make its over-the-counter (OTC) market time befitting.

In this regard, the port city bourse needed amending the existing rules or formulating new rules.

As part of its move, the CSE has submitted a proposal to Bangladesh Securities and Exchange Commission (BSEC), seeking its decision about amending the existing rules or formulation of new rules.

M Shaifur Rahman Mazumdar, managing director of the CSE, said the proposed OTC market will be another window like the main board.

"We can amend the existing rules or formulate new rules following the regulatory instruction," he said.

Apart from transaction of the shares of de-listed companies, the non-listed companies will also be able to transfer their shares trough the OTC market.

Presently, some 65 companies are listed with the OTC market and some 32 companies trying to comply with the securities rules.

Meanwhile, the Dhaka Stock Exchange (DSE) advanced much to modernise the function of its OTC market.

The securities regulator has already formed a five-member committee to make recommendation on the development of OTC (over-the-counter) market of the bourse.

The regulatory move came following the premier bourse's proposal to change existing rules of the OTC market.

The DSE's proposal regarding reforms of the OTC market was submitted to the BSEC in March, 2017.

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