DSE top brokers for cancellation of initial public offering quota

সান বিডি ডেস্ক || প্রকাশ: ২০১৯-০৩-২৬ ১২:২৪:৪৪ || আপডেট: ২০১৯-০৩-২৬ ১২:২৪:৪৪

The top brokers of DSE and merchant bankers have demanded of the regulator to introduce T+0 share trading cycle settlement aiming to bring dynamism in trading activities that currently remained dull.

They also urged the Bangladesh Securities and Exchange Commission (BSEC) to formulate a guideline regarding much-talked about the ‘placement shares’.

They demanded cancellation of existing initial public offering (IPO) quota.

Share trading settlement period is T+0 means buyers make payment and sellers have to transfer ownership of stocks in the same day.

Currently, share trading settlement period is two days (T+2), meaning, buyers make payment and sellers have to transfer ownership of stocks within two days after the trade taking place.

They also demanded to introduce share-netting facility as they believe this trading system will help reverse the slumping turnover. Netting is used in share trading, where an investor can change his position on a single day.

Their demands came at an emergency meeting with the Dhaka Stock Exchange (DSE) board of directors and top broker and merchant bankers on Monday evening at the DSE premises.

DSE Chairman Prof. Dr Abul Hashem presided over the meeting where DSE Brokers Association (DBA) president Shakil Rizvi, DSE director Sharif Ataur Rahman, Minhaz Mannan Emon, DSE managing director KAM Majedur Rahman, spoke among others.

The meeting was held to identify reasons behind the recent sharp fall in indices and turnover.

DBA president Md Shakil Rizvi sought permission from the securities regulator to open service booth of brokerage house to cater to more investors.

He also urged the policy makers to reduce the saving certificates interest rates which create some scope to divert some fund to the capital market.

They also laid emphasis on transparency in listed companies’ corporate disclosures, listing of multinational companies to enhance the depth of the country’s capital market, to attract more foreign investors to the Bangladesh capital market etc.

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