The general investors of the stock market have demanded the elimination of disparity in the Dhaka Stock Exchange’s (DSE) SME platform. They submitted a 13-point charter of demands to the Bangladesh Securities and Exchange Commission (BSEC) chairman on Tuesday.
The investors have requested that necessary measures, having considered the demands, be taken to eliminate discrimination. Seven investors signed the demand petition on behalf of all investors.
They noted that SME platforms are facing share disparity due to circuit breakers. They called formakingSME platformcircuit breakers like the circuit breakers in the main market.
The requirement that one must have Tk 30 lakh or be qualified at the end of the quarter to purchase an SME should be removed so that all kinds of investors get the opportunity to buy shares in the SME market.
Those who did not pay dividends on time should be punished and an independent director should be appointed from general shareholders, said the investors.
The chairmen, managing directors and company secretaries of all companies that have failed to comply with the BSEC regulations must be replaced with qualified individuals.
Companies whose paid-up capital is equal to that of companies in the main market should be allowed to trade directly in the main market. Companies that maintain all types of compliance with the BSEC should be automatically allowed to trade in the main market, according to their charter of demands.
SMEswhose market shares have paid 10 per cent cash dividends for three consecutive years should be automatically allowed to trade in the main market. If the shares of the SME market are under loan, brokerage houses and merchant banks should provide loans on SME shares as well as on main market shares, said the investors.
If any share from the over-the-counter (OTC) market comes to the SME market and if they maintain all types of compliance, then they should be given the opportunity to trade in the main market. All shares of the SME platform must submit mandatory financial reports at the end of each quarter or every six months, like the main market, according to the demands.
SMEs with low paid-up capital, if they want to increase their paid-up capital for business purposes, should be given that opportunity subject to conditions. No shares sold through private placement to increase paid-up capital can be listed on the SME market.
According to a survey conducted by LankaBangla Securities, the majority of respondents -- 57 per cent –have said that the SME market of the country’s stock exchanges is not effective while 31 per cent think it is effective.
The leading brokerage firm conducted the survey, titled “The Bangladesh Capital Market Sentiment Survey-2024”, on a total of 100 professionals from various backgrounds between December 13, 2023 and January 20, 2024.
Small Capital Platform of DSE, therefore, plays a vital role in the funding environment by bridging this gap for growing SME companies as they seek to develop their business through the use of external finance from capital markets.
After nearly five years of the launch of the SME platform, only 19 companies have so far gotten listed on the trading platform.
DSE introduced the platform in September 2019 with the aim of listing at least 50 small-capitalised companies on the platform by 2020. However, share trading on the SME board commenced in September 2021 with six companies.
The BSEC in September 2021 abolished the OTC market.
On Tuesday, the SME index, DSMEX, decreased by 10.92 points and the market generated a Tk 18.6 crore turnover, a 300 per cent increase from the previous session.
