Bangladesh Securities and Exchange Commission on Tuesday issued a directive to the Dhaka Stock Exchanges asking the bourse to implement the demutualisation schemes as per the Demutualisation Act. Now the bourse has to publish the demutualisation scheme on its website and in newspapers, distribute the scheme among its member-brokers and publish it as a government gazette within the next seven days.
As per the Demutualisation Act, the DSE has to adopt the interim board in an extraordinary general meeting to be held within the next 30 days.
The bourse in the next 30 days have to allocate shares to its member-brokers while 60 per cent of the allocated shares have to be transferred to a blocked account. The bourse also has to issue certificate to the member-brokers against the blocked shares and issue Trading Right Entitlement Certificate to each member-broker.
The BSEC issued the directive four days after approving the scheme in its commission meeting on September 26. However, the scheme would be effective from Wednesday.
Once the demutualisation process is completed, both the bourses will turn into profit-oriented companies from non-profit entities, separating their management from the ownership.
The bourses have to dissolve their present boards by November after getting registered with the Registrar of Joint Stock Companies and Firms and they will have to form interim boards.
After the demutualisation, member-brokers of the bourses will turn into shareholders of the stock exchanges.
The commission rejected the bourses’ proposal of raising the number of member-brokers in the demutualised boards as it kept only five posts for the shareholders (member-brokers) in the boards of the bourses.
The commission also kept one post for a strategic partner, seven posts for independent directors and one for the chief executive officer with voting power. The chairman of the bourse will be one from the independent directors.
-With New Age input
