Home ›› 04 Jan 2023 ›› Stock
The alternative trading board (ATB) of the Dhaka Stock Exchange (DSE), which is scheduled to replace the over-the-counter (OTC) platform, will formally start its journey today excluding the OTC-listed companies.
Though it was previously said all the OTC-listed firms would be included in the ATB, finally the DSE authorities excluded them citing compliance issues.
The alternative trading board will start its trading with two newly listed companies only.
Out of the 18 companies listed on the OTC platform, some, however, have already been delisted from the market due to their inoperative status.
Earlier, in a directive issued on September 16, 2021, the securities regulator BSEC directed the transfer of the OTC companies to the ATB board.
To this end, the regulator also approved the DSE Alternative Trading Board Regulation-2022 last year.
BSES Chairman Professor Shibli Rubayat-Ul-Islam is expected to inaugurate the ATB platform as the chief guest today.
Besides, BSEC Commissioner Dr Shaikh Shamsuddin Ahmed and DSE Chairman Eunusur Rahman will be present at the function.
Talking to The Business Post in this regard, BSEC Executive Director and Spokesperson Rezaul Karim said the ATB board is being introduced by the DSE with two companies only. If the OTC-listed companies can ensure compliance, they would also be allowed to be included in the ATB.
The ATB board will start trading with one equity-based company and one bond.
Of the two companies, one is Lanka Bangla Securities Limited, and the other is Pran Agro Limited.
The paid-up capital of Lanka Bangla Securities Limited is Tk 269 crore. It would offload 10 per cent of its total shares on the capital market.
Therefore, the company would sell shares at fair value on the first day.
According to the ATB rules, Lanka Bangla Securities would have to sell 10 per cent of its shares on the market within 30 days after the start of the operation of the platform.
At the same time, the trading of Pran Agro Limited’s Tk 210 crore worth of bonds will also start today.
MetLife Insurance made a major investment in the bond. Each of the bond units would be Tk 10 lakh.
The bond would pay dividends to investors at a coupon rate of 5.75 percent on an annual basis.
Companies listed on the over-the-counter (OTC) market would remain suspended from the ATB platform, DSE sources familiar with the matter said.
They, however, said of the OTC-listed companies which do have operations, would have the scope to get listed on the ATB platform.
Most of the OTC companies remained closed. Even, the assets of some companies have been auctioned by some banks to realise their defaulted loans.
According to the regulation, if 50 per cent of the total shares of OTC companies are in the form of demat or electronic shares, they can be listed on the ATB board.
The Bangladesh Securities and Exchange Commission (BSEC) earlier had decided to transfer or delist listed stocks from the over-the-counter (OTC) market from September 15, 2021.
At that time it was said 70 companies were listed on the OTC board. Of them, 41 would be transferred to either the SME board or the alternative trading board. At the same time, the remaining 29 companies would be delisted from the market.
