DSE, CSE DEMUTUALISATION
Bourses submit schemes to BSEC proposing 19-member board
The Dhaka and Chittagong stock exchanges on Monday submitted their respective demutualisation schemes to the Bangladesh Securities and Exchange Commission with a proposal of downsizing their boards to 19 for the existing 25 members.
BSEC acting chairman Helal Uddin Nizami, also a commissioner of the stock market regulator, and three other commissioners received the schemes from the bourses on Monday, one day before the deadline for submitting the schemes.
DSE team led by its president Ahasanul Islam and CSE team led by its president Al Maruf Khan submitted to the regulator their respective schemes.
The BSEC will have to approve the schemes within the next 60 days.
‘We have submitted the demutualisation scheme to the regulator as per the section 5 of the Exchanges Demutualisation Act, 2013 with 15 types of documents,’ Ahasanul Islam told reporters after submitting the scheme.
He said, ‘We will publish the scheme after getting approval from the commission.’
The DSE board on July 22 approved the bourse’s valuation at around Tk 4,200 crore and each member house was valued at Tk 7.21 crore without premium.
The paid up capital of the bourse was set Tk 1,803 crore, said DSE sources.
In the demutualisation schemes, the bourses proposed a downsizing of their
respective boards to 19 from the existing 25 members.
The bourses proposed that 10 members would come from the independent criteria and nine from the members’ criteria.
The board of the CSE on Saturday approved the demutualisation scheme of the port city bourse.
‘The paid up capital of the CSE was set at Tk 635 crore,’ Al Maruf Khan said after submitting the scheme to the BSEC.
Each member of the 148-member bourse will get 44 lakh shares of the bourse of Tk 4.40 crore, he said.
‘The 800-page demutualisation scheme includes 15 types of documents,’ said Maruf.
According to the Exchanges Demutualisation Act, 2013, which was passed in the parliament on April 29, the stock exchanges are bound to submit their demutualisation schemes to the securities regulator within 90 days of the day when the act comes into effect and the regulator will approve the schemes within the next 60 days.
The demutualisation act also said that the 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 by right entitlement certificate holders, strategic investors and individuals, the act says.
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 says.
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.
-With New Age input
