Clearing Corporation
Bourses unlikely to be allowed to hold over 10pc shares
The Bangladesh Securities and Exchange Commission may not allow the Dhaka and Chittagong stock exchanges to hold more than 10 per cent shares respectively in forming Clearing Corporation for the capital market, said a BSEC high official. The two bourses earlier decided to form the Clearing Corporation fully owned by them. The commission high official expressed the view after the BSEC committee concerned had presented an initial demonstration on roadmap to form the Clearing Corporation on Monday.
The BSEC on March 4 formed three separate committees with the task of preparing framework for establishing a clearing corporation, a derivative market and a commodity market.
A clearing corporation, also known as clearing firm or clearing house, plays a key role in ensuring that executed trades are settled within a specified period of time in an efficient manner.
‘The committee on clearing corporation demonstrated a very preliminary theory-based paperwork to the commission,’ the official said.
The committee has now been asked to prepare a complete framework in this regard within next 15 days, he said.
The BSEC official also said that the commission aimed at completing the entire requirement to launch the Clearing Corporation including formulation of rules within this year.
In the meantime, the committee will study the rules and regulations of clearing corporation in other countries and may visit one or more countries to know the whole process more closely, he said.
The commission may follow the spirit of demutualisation in allowing any entity to form the Clearing Corporation, he said.
In line with that, the commission may not allow any entity including DSE and CSE to hold more than 10 per cent shares, he said.
In August 2013, the DSE and CSE had signed an agreement to set up a joint clearing corporation for smooth transaction in the stock market and payment for derivative instruments.
As per the agreement, the DSE will hold 65 per cent and the CSE the rest of stake of the Clearing Corporation.
Earlier, another BSEC official said that the commission would allow clearing corporation before launching derivative and commodity markets.
Finance minister AMA Muhith in 2010, while replaying to a questing in the parliament about the capital market, had said the government had taken steps to set up a clearing corporation immediately for speedy and smooth transaction in the stock market.
-With New Age input
