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DSE aims at listing of at least 20 securities to boost trades on ATB

Mohammad Mufazzel | January 11, 2023 00:00:00

The Dhaka Stock Exchange is looking to increase the number of securities listed on the newly-launched Alternative Trading Board to make it vibrant.

In doing so, the main board of the stock market insists that the listed securities should meet some sort of standards so investors gain confidence and come to the platform for trading.

As of now, one equity security and a debt security have been listed. One of them, LankaBangla Securities have seen transactions of 2,500 shares since the first trading on January 4, but the other Pran Agro Limited Unsecured Guaranteed Bond-I has recorded no trades yet.

"At least 20 securities are required for the platform to gain momentum. Our target is to ensure listing of quality securities," said M. Shaifur Rahman Mazumdar, managing director (current charge) at the DSE.

Defining the standards set, he said the companies that had convincing track records and bore good reputation would be welcomed into the platform. That was the ground on which the DSE had rejected a proposal.

"The DSE has found non-compliance issues while scrutinising the proposal. The target of the ATB will not be achieved if we allow such kind of securities," Mr. Mazumdar said.

The platform will allow investors -- both institutional and individual -- to transact non-listed and de-listed securities, corporate bonds, alternative investment funds, and open-end MFs digitally through their BO (beneficiary owners) accounts.

At present, there is no proposal awaiting approval for listing on the ATB.

The DSE has been on the lookout for the companies keen on share transactions on the platform, DSE officials said.

In the first session, 500 shares of LankaBangla Securities were transferred at Tk 7,700. The same amount of shares got transacted on January 5 and January 9 each at Tk 8,000 and Tk 8,400.

On Tuesday, 1,000 shares of LankaBangla Securities traded at Tk 18,000.

An investor can avail A+2 trading facility on the ATB meaning they will be able to sell shares on the third day after the purchase.

They will also enjoy credit facility while purchasing units of open-end mutual funds.

The mandatory provision of disclosing price sensitive information (PSI) for stocks in the main market will be applicable to the securities on the board, but on a yearly basis.

As per the rules, a company can transfer up to 49 per cent of its stakes with 10 per cent transferred within 30 days of trading.

The issuer shall be registered as a public limited company bound to hold annual general meetings (AGM) regularly, while the registration of debt securities, MFs and alternative investment funds will be tied to the rules of the Bangladesh Securities and Exchange Commission.

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