FE Today Logo

DSE seeks BSEC's opinion on offloading of shares

Demutualisation of stock exchanges

FE REPORT | October 06, 2022 00:00:00

Dhaka Stock Exchange (DSE) wants to sit with the securities regulator to discuss ways to accelerate the process of offloading the exchange's shares on the capital market.

The premier bourse has recently sent a letter to the Bangladesh Securities and Exchange Commission (BSEC) seeking time for a meeting on the issue.

"The DSE will have to offload its 35 per cent of shares as per the Demutualisation Act, 2013. For this, we are seeking opinions from the regulator. That's why we want to sit with the BSEC," said DSE Managing Director (current charge) Mohammad Shaifur Rahman Mazumder.

The DSE has earlier submitted a plan regarding the offloading of the shares of the stock exchange, he said.

"To complete the process of going public, the DSE needs some instructions under the regulatory framework. So, we have sought time from the BSEC to discuss the issue," he added.

He also said the securities regulator has not yet set any date for a meeting on this issue.

As per the Demutualisation Act, 2013, both the stock exchanges are mandated to offload 35 per cent shares of their paid-up capitals.

On completion of demutualisation process in November 2013, the DSE's shareholders received 40 per cent shares of the exchange.

As strategic partners of the DSE, Shenzhen Stock Exchange and Shanghai Stock Exchange purchased 25 per cent shares of the DSE in August 2018. And the remaining 35 per cent shares will have to be offloaded through initial public offering (IPO).

On December 13, 2021, the securities regulator instructed both the stock exchanges to accelerate the process of offloading shares.

The BSEC also asked the exchanges to submit detailed plans in this regard within January 10, 2022 and the DSE submitted its plan in February last.

The securities regulator also formed a five-member committee to work on the exchanges' plans of offloading the shares.

[email protected]

Share if you like