Will ATB salvage DSE from falling?

Shares trading on the alternative trading board (ATB) of the Dhaka Stock Exchange (DSE) began yesterday aiming to facilitate share transactions of non-listed firms, bonds, and mutual funds.

DSE official believe this platform will put a significant impact on enhancing the overall market liquidity.

Professor Shibli Rubayat-Ul-Islam, chairman of the Bangladesh Securities and Exchange Commission (BSEC), inaugurated the new platform’s share trading during an event held at the DSE headquarters in the capital yesterday.

Currently, two companies are listed on the platform—one is Lanka Bangla Securities Limited, and the other is Pran Agro Limited.

The alternative trading board of the DSE has replaced the over-the-counter (OTC) platform of the premier bourse.

Though it was previously stated that all OTC-listed firms would be included in the ATB, the DSE authorities eventually excluded them, citing compliance concerns.

The alternative trading board, thus, started its trading operations with only two newly listed companies.

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.

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 platform’s operation.

At the same time, the trading of Pran Agro Limited’s Tk 210 crore worth of bonds started on Wednesday.

At the event, speakers hoped that the capital market, which is currently facing many challenges, will turn around in the coming days.

Addressing the event, BSEC chairman said, “I am very optimistic that the new year will be good for the capital market. Efforts are underway to introduce more new products in the market.”

“But the benefits of new products will not manifest themselves overnight; results will come gradually.”

While speaking at the event, DSE Chairman Md Yunusur Rahman said, “The ATB will play a major role in the capital market in the days to come.”

BSEC Commissioner Shaikh Shamsuddin Ahmed attended the event as a special guest, while Acting Managing Director of DSE Saifur Rahman Majumder delivered the welcome speech.

Director of Lanka Bangla Securities Limited Mahbubul Anam, and Pran Agro’s finance director Uzma Chowdhury, also spoke at the event.

Saifur Rahman said the transfer of ownership, branding, and exposure of companies would create liquidity and alternative investment opportunities for potential investors in the market.

The benefit of listing of companies on the ATB is to enhance the overall market liquidity, he added.

The circuit breaker for the ATB companies for the first two trading days would be 4 per cent on the present value calculated at least a 10 per cent discount rate per annum, the third day would be closed, and the circuit breaker for the fourth day would be 5 per cent, he continued.

The primary shareholders, including the sponsors and directors of the company, shall not offload or sell more than 49 per cent equity securities or ordinary shares of the company, according to the DSE.