DSE, CSE submit demutualisation schemes to BSEC today
The board of directors of Chittagong Stock Exchange has approved the valuation of the bourse at Tk 634 crore.
The port city bourse approved its valuation on Saturday and set the value of each brokerage house at Tk 4.25 crore without premium.
Each member of the CSE, a 148-member bourse, will get 42.50 lakh shares of the exchange in face value of Tk 10 each share, CSE sources confirmed New Age.
The premium on each share of the bourse was not set on Saturday when the board approved also the demutualisation scheme for submitting it to the Bangladesh Securities and Exchange Commission, the CSE sources said.
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 CSE board of directors has approved the demutualisation scheme of the bourse to comply with the demutualisation act,’ CSE president Al Maruf Khan told New Age on Saturday.
‘We have also approved a five-year business plan which includes setting up
of commodity market and derivative market to submit with the demutualisation scheme of the bourse,’ Maruf said.
‘We will propose a downsizing of the board of directors to 19 members from 24 members. Of the 19 directors, 10 will be from independent criteria and nine from the member criteria,’ he added.
The demutualisation scheme will also include the governance of the exchange, board and administration regulations, business plan,
members’ shareholding status, valuation of the bourse and its member house and the procedures of completing the demutualisation.
Both the bourses, Dhaka Stock Exchange and CSE, will submit their demutualisation schemes to the BSEC today, just one day before the expiry of the deadline for submitting the schemes to the
regulator.
‘We are giving the demutualisation scheme a final check to make it free from any mistake before submitting it to the BSEC on Monday (today),’ CSE chief executive officer Syed Sajid Husain told New Age on Saturday.
The DSE passed the demutualisation scheme on July 22 and will submit it to the BSEC on Monday (today), DSE officials said.
The DSE board on July 22 also approved the valuation of the bourse at around Tk 4,000 crore while the value of each brokerage house was set at Tk 7.21 crore without premium.
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.
According to the demutualisation act, 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
