DEMUTUALISATION SCHEME
Dhaka bourse valuation set at around Tk 4,000cr
The Dhaka Stock Exchange on Monday approved the valuation of the bourse to around Tk 4,000 crore while the value of each brokerage house, without premium, was set at Tk 7.21 crore.
DSE board of directors in a meeting on Monday approved the valuation worked out by the Netherlands-based international audit firm KPMG.DSE sources said the tangible asset of the bourse is around Tk 527 crore, fixed deposit is Tk 1,000 crore and share capital of 250-member bourse is worth Tk 1,800 crore.
They said that each share price of each brokerage house was set at Tk 10. But they could not confirm the rate of premium set on each share.
The bourse’s board members, however, declined to give any details of the valuation scheme.
‘We have finalised the demutualisation scheme and it is only for submitting to Securities and Exchange Commission. When time will come we will disclose it to public,’ DSE president Ahsanul Islam told New Age when asked about the issue.
He said the scheme will be submitted to the BSEC as per the law and the demutualisation process will take its course accordingly.
Demutualisation means separating the ownership of a stock exchange from its management to do away with conflict of interests.
As per the demutualisation act, which was passed in parliament on April 29, the DSE will have to submit the scheme and business plan to the regulator within 90 days after a gazette notification of the act which will end on July 30.
After receiving the demutualisation scheme from the bourses, Bangladesh Securities and Exchange Commission, the stock market regulator, will approve it within 60 days
Stock exchange members or brokerage houses will hold 40 per cent shares after the demutualisation of a bourse.
The rest 60 per cent will be kept for trading right entitlement certificate holders, strategic investors and individuals.
Strategic investors will not be allowed to hold more than 25 per cent shares of a stock exchange, while no individual will hold more than 5 per cent.
The act has paved the way for separating the bourses’ management from ownership to ensure transparency and accountability in the stock market.
The demutualisation act says independent experts will hold the posts of chairmen of the Dhaka and Chittagong stock exchanges, not the owners-cum-directors of the bourses.
The BSEC will formulate the rules for appointing independent experts as bourse directors while capital market experts will apply to the commission for appointment as members of the boards of directors of the country’s two stock exchanges.
The management of a stock exchange must hold elections to its board of directors within 90 days from the date of its demutualisation.
-With New Age input
