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A H Khan

Published:
2018-09-05 10:34:18 BdST

DSE has completed all the strategic partnership steps


Dhaka Stock Exchange (DSE) Limited has completed an important chapter of stock exchange demutualization through transfer of shares to the strategic partner. The main stock exchange, the country's largest stock exchange, completed the transfer of shares in favor of Shenzhen Consortium yesterday after receiving 25 percent share price and a stamp duty of around Tk 962 million on Monday.

After completing all formalities, the DSE organized a press conference at a hotel in the capital yesterday. In addition to members of the board of directors of the exchange, representatives from the Chinese Consortium were present.

DSE Chairman Prof Dr. Abul Hashem said that today's day is an important day for Bangladesh's capital market. This strategic partnership with the world's leading two stock exchanges has given DSE a step forward in becoming an international stock exchange.

At the press conference, DSE Managing Director KM Majedur Rahman said, Taka 9.3 billion from the strategic investors received stamp duty as 15 million rupees in the government treasury. DSE members own the remaining 947 crore. This money will soon be distributed among them. He expressed hope that the Strategic Partnership of Shenzhen-Shanghai Stock Exchange will play an important role in transforming the DSE into an international stock exchange.

As the representative of the consortium, DSE has already joined the Shenzhen Stock Exchange's Technology Management Committee's vice-director Shi Wenhai. In addition to mentioning various aspects of the relationship between the two countries on economic and capital issues, he said, the consortium has clearly stated in its detailed share purchase agreement, what role should be played as a strategic partner of DSE. As a strategic partner, Consortium is now deeply researching and monitoring Bangladesh's capital market. They will work on the overall development of the Dhaka Stock Exchange on the basis of mutual cooperation and consultation.

Regarding the priority of the Chinese Consortium, he said that the development of human resources such as world-class information flow, filing and disclosure, development of the overall technology infrastructure, effective surveillance system, and adaptation to the modern system from the trading system of the stock exchange are their primary priority. Consortium also will play a strategic partner in the promotion of fixed income securities and other products, business development of the stock exchange in the local and international sectors, and the attractiveness of investment and investment.

Liu Fuzhong, another Consortium representative, said, "Bangladesh's capital market is unlikely, but challenges are many," said Chinese fund managers interested in investing in Bangladesh market. Consortium is doing initial ground work for the bridge.

The speakers, both the capital market regulatory bodies, the central bank, the investment development authority of Bangladesh, and all the parties, thanked the program for support and cooperation in each step of strategic partnership. Among others, Justice Siddiqur Rahman Miah, Sharif Ataur Rahman, Rakibur Rahman, Minhaj Mannan Imon, Hanif Bhuiyan, among others, were present on the occasion. Chinese delegates were also present on the occasion, Deputy Director of the Global Development Department of the Shanghai Stock Exchange Yang Jinghong and Li Qingyue.

It is to be noted that the Consolidated Consortium of Shenzhen-Shanghai Stock Exchange signed a formal agreement to buy 25 percent shares of DSE as a strategic partner on May 14. On 26 August, the Bangladesh Bank gave the consent of the Chinese Consortium as a strategic partner of the DSE to send money through non-resident investors' money accounts (Nita) to Bangladesh. On September 3, after all the money was deposited in the banking channel on September 3, DSE deposited 25 percent of the consortium's BO as yesterday.

Meanwhile, DSE shareholders will have to pay a capital gain tax of Taka 142 crores to 15 percent of the capital gains arising out of 947 crores earned by the DSE. But the profit of the capital market for the sake of the market, the members of the exchange are seeking exemption on the capital gains tax on the terms of investment in the capital market. Though the proposal was made by the DSE Brokerage Association (DBA) to the finance minister, no decision has been made so far.

In fact, on February 6 of this year, DSE unveiled the tender box proposed by strategic partners. In the process of tendering, two consortium proposals were submitted for strategic partner for DSE, one-fourth or 45 crore 9 lakh 44 thousand 125 shares of 180 crore 37 lakh 76 thousand 500 shares. Meanwhile, Chinese Consortium of Shenzhen and Shanghai Stock Exchange proposed to invest Rs 992 crore in shares of DSE for Tk 22 per share. Outside, they pledged to provide free technical and technical support to DSE, which is worth mentioning of Tk 308 crores. However, in the interim period, the shareholders' cash dividends reduced for the last accounting year, the valuation of each of the shares of DSE decreased by 1 rupee, which was adjusted in the final share purchase agreement (SPA).

Under the proposed Technical Support of Chinese Consortium, DSE's trading and surveillance system modernization, Business Process Management (BPM) System Consulting Plan, Consulting Service for Bond Tender System, Information Disclosure System
 

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