They have to form first board within 90 days
The Dhaka and Chittagong stock exchanges on Thursday turned into demutualised bodies as the bourses on the day received their amended memorandum and articles of association certified by the Registrar of Joint Stock Companies and Firms. According to the Demutualisation Act 2013 passed by the parliament on April 29, the bourses have now become profit-oriented companies from non-profit organisations.
The member-brokers of the bourses have turned into shareholders of the companies and will get dividends from the bourses’ profit.
As per the demutualisation act, the bourse has to form its first board within the next 90 days.
With the demutualisation DSE chief executive officer Swapan Kumar Bala has become the managing director of the bourse.
‘We have received the certified copy of the amended memorandum and articles of association from the RJSC today. So, as per the demutualisation act, the bourse has become a demutualised stock exchange now,’ Swapan told New Age on Thursday.
He said the DSE became the 23rd demutualised bourse in the world.
‘Now we have to restructure the bourse as per the demutualisation scheme,’ he added.
CSE officials also said that they got the certified copy from the RJSC to become a company.
The DSE on November 7 submitted its amended memorandum of association and articles of association to the RJSC after getting shareholders’ approval at an extraordinary general meeting on November 2.
The amended memorandum of association of the bourse has disallowed any shareholder of the bourse to enter in the bourse’s office without getting permission from the proper authority.
‘Now the DSE has to adopt the demutualisation scheme as soon as possible and appoint a chief regulatory officer, otherwise it may create problem in the bourse’s function,’ another DSE official said.
The Bangladesh Securities and Exchange Commission set the demutualised board size at 13-member, rejecting the DSE and CSE’s proposal of a 15-member board.
The first board will include — four elected shareholders, one strategic investor, managing director of the bourse and seven independent directors.
The bourse chairman will come from the independent directors, the demutualisation scheme of the bourse approved by the BSEC said.
If no strategic investor is found, the post will remain vacant and the board size will be 12-member, the scheme also said.
The member-brokers of the DSE will get 72.10 lakh shares each at a face value of Tk 10 each share.
Each member-broker will get a trading right entitlement certificate for conducting business as a stockbroker. The member-broker will be able to transfer the TRAC for once within five years of issuance. After five years the TRAC will be non-transferable.
The paid-up capital of the bourse was set at Tk 1,803 crore and the total asset value at around Tk 4,200 crore.
The BSEC on Thursday decided that the DSE and the CSE would follow the book-building method in issuing their initial public offerings which the bourses have to arrange within three years after their demutualisation.
Earlier on September 26, the regulator gave its final approval to the demutualisation schemes of the DSE and the Chittagong Stock Exchange. The bourses had submitted their schemes to the BSEC on July 29.
-With New Age input
