Demutualisation scheme made public
The Dhaka Stock Exchange on Thursday made public the demutualisation scheme as per which the DSE will keep 60 per cent of its member-brokers’ shares in a block account until it goes for an initial public offering. Under the scheme, 250 member-brokers of the DSE, who will turn into shareholders of the bourse after its demutualisaion, will get 40 per cent of the shares of the stock exchange. The DSE made the demutualisation scheme public after the Bangladesh Securities and Exchange Commission sent the approved scheme to the bourse for implementation on Monday. The BSEC approved it on September 26.
As per the scheme, each member-broker will get a certificate against the transferred 60 per cent shares which will remained blocked for strategic, institutional and general investors for IPO purpose.
A strategic investor will be able to obtain 25 per cent or more shares that the bourse will offload in
the capital market in future, while a general investor will be allowed to hold 5 per cent of the shares to be floated.
As per the demutualisation scheme, the bourse will issue 180.38 crore shares as its paid-up capital currently stands at Tk 1,803 crore. The authorised capital of the bourse was set at Tk 2,500 crore.
Within 30 days of the approval of the demutualisation scheme, the bourse will issue one trading rights entitlement certificate in favour of each member-broker except DSE members Abdul Ahad, Mohammad Hosain, Ahsanur Rahman and Late Md Idris.
The TRACs to be issued to the initial shareholders can be transferable once within five years from the demutualisation to any eligible entity. But, all the TRACs will become non-transferable after five years of demutualisation.
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 demutualised board of the bourse will be of 13 members — five posts for the shareholders [member-brokers] including one post for the strategic partner, seven posts for the independent directors and one for the chief executive officer with voting power.
The DSE in the final hearing on September 25 proposed a 15-member board — six posts for shareholders, eight posts for the independent directors and rest one for the chief executive officer.
-With New Age input
