Monday, November 24, 2014

Banks' capital rises

Daily Star-24 November'2014 Monday
Banks' overall capital increased 1.94 percent in the third quarter compared to the previous quarter, as asset quality of most banks improved.
On September 30, their capital was Tk 64,932 crore, which is 10.57 percent of their total risk-weighted assets. The amount was Tk 63,694 crore on June 31.
In line with international standards, banks have to maintain a capital adequacy ratio (CAR) of 10 percent against their risk-weighted assets.
The total capital of state-owned commercial banks increased around 3 percent to Tk 9,531 crore in September as the capital of the banks, except Sonali Bank, marked a rise.
Their CAR now stands at 8.66 percent, which was 8.05 percent three months back, as a result of the overall hike in capital.
The capital shortfall of Sonali stood at Tk 1,730 crore. State-owned specialised banks, except Bangladesh Development Bank, had no capital at the end of September, rather they had negative capital that almost doubled to Tk 8,213 crore.
At the end of June, their negative capital was Tk 4,338 crore.
Of the capital shortfall, BASIC Bank alone accounted for Tk 2,257 crore, while it was Tk 6,090 crore for Krishi Bank, according to central bank statistics.
Of the private banks, three -- Bangladesh Commerce Bank, Premier Bank and ICB Islamic Bank -- saw capital shortfall.
The overall capital of the private banks at the end of September was Tk 51,617 crore, which was 11.99 percent of their risk-weighted assets.
Except for one bank, the foreign banks' capital situation was healthy. On an average, their CAR was 20.61 percent.

Published: 12:00 am Monday, November 24, 2014


Beximco Pharma receives approval from Health Canada

FE Report-24 November'2014 Monday
Beximco Pharmaceuticals Limited., the leading manufacturer and exporter of medicines in Bangladesh, has recently received GMP (Good Manufacturing Practices) approval from the Canadian regulatory authority, Health Canada, according to a statement.

This is for the first time a Bangladeshi company has received this prestigious approval. This opens a new marketing opportunity for Beximco Pharma in the Canadian market and, similar to many other developed countries, Canada is increasingly promoting access to generic drugs. In July this year, Beximco Pharma also received GMP approval from the Taiwan Food & Drug Authority (TFDA), again marking a first time approval for a Bangladeshi company.

Nazmul Hassan MP, Managing Director of Beximco Pharma, said, "Canada is an important market for us and this approval marks a significant milestone for the Company, further validating our high standards of quality and compliance practices.  This approval builds on our existing presence in key regulated markets and is an important step towards our aspiration to become a global generic drug player.''

Turnover hits below Tk 4.0 billion-mark

FE Report-24 November'2014 Monday
Turnover at the Dhaka Stock Exchange (DSE) fell below Tk 4.0 billion-mark Sunday, lowest in the last four months, as investors were reluctant to take fresh exposure in the market amid shaky sentiment.

Turnover, the most important indicator of the market came down to Tk 3.48 billion, which was 29.34 per cent lower over the previous session's value of Tk 4.86 billion. It was the lowest turnover since Tk 3.39 billion on July 24 last.

"The ongoing pessimism kept investors mostly inactive, bringing the turnover to fresh four-month low," said an analyst.

Along with turnover, DSEX, the prime index of the DSE also saw sharp decline. DSEX went down by 61.49 points of 1.25 per cent to close at 4,838.11 points which is more than two months lowest level since September 17.

The other two indices also saw steep decline. The DS30, comprising blue chips lost 29.55 points or 1.62 per cent to close at 1,785.13 points. The DSE Shariah Index shed 12.18 points or 1.06 per cent to close at 1,133.63 points.

"The market hit lowest turnover since July as the market prolonged its negative vibe amidst the lack of confidence among the investors," said International Leasing Securities in an analysis.

The bearish attitude of the investors regarding the market was reflected in the sharp downturn of the index throughout the trading session, said the International Leasing.

LankaBangla Securities said: "Shares hold on to their losses on face of continual selling pressure in market".

"Market might be going through a correction phase, where stocks, which rallied fast in previous months, have now bucked the trend for a while," said the stock broker.

The port city bourse, Chittagong Stock Exchange (CSE) also witnessed sharp decline with its Selective Categories Index - CSCX - lost 115.03 points to close at 9,138.97 points.

Losers beat gainers 165 to 30, with 18 issues remaining unchanged at the port city bourse that traded 7.34 million shares and mutual fund units, turnover value of Tk 268.44 million.

 babulfexpress@gmail.com

Wednesday, November 19, 2014

Khan Brothers makes flying debut on bourses

FE Report - 19 November'2014 Wednesday
Khan Brothers PP Woven Bag Industries Tuesday made a flying trade debut on the stock exchanges by becoming the top gainer and turnover leader of the day.

Listed with an offer value of Tk 10 each, Khan Brothers PP Woven Bag Industries shares traded between Tk 80 and Tk 47 and closed at Tk 76.6, soaring 666 per cent on the Dhaka Stock Exchange (DSE).

A total of 9.62 million shares worth Tk 588.98 million changed hands in the premier bourse, securing the company top position on the turnover leaders' list.

A total of 14 companies were listed in the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) this year as on Tuesday in 2014. Of them, Khan Brothers PP Woven Bag Industries is the highest gainer on debut day in 2014.

Khan Brothers PP Woven Bag Industries is the 10th company listed in the miscellaneous category, which accounts for more than 2 per cent of the total market capitalisation on the DSE.

In the port city bourse - CSE, each share of the company ranged between Tk 80 and 50 and closed at Tk 75.5, gaining 655 per cent from its issue price of Tk 10.

The company, which received regulatory approval from the Bangladesh Securities and Exchange Commission in June, floated 20 million ordinary shares at an offer price of Tk 10 and raised a fund worth Tk 200 million from the public. A market lot is 500 shares.

The IPO proceeds are being used for expansion of business 81.29 per cent, repayment of long-term loan 10.50 per cent and working capital purpose 8.21 per cent, according to the company's prospectus.

"The new issue -- Khan Brothers PP Woven Bag Industries attracted the investors most as the company came to with a face value," said an analyst.

A newly listed security is sometimes considered as an instrument for short-term speculation, and many investors want to bet on the shares for short-term gain, he said. "So, it created hype among the investors on the first day of trading."

Meanwhile, the board of directors of the new comer Tuesday declared 10 per cent stock dividend for the year ended 30 June 2014.

The company has also reported NPAT of Tk 74.38 million, EPS of Tk. 1.71, NAV per share of Tk 15.85 and NOCFPS of Tk 1.20 for the year ended on 30 June 2014.

The company provides innovative packaging solutions for different industries by manufacturing tailor made polypropylene fabrics, polypropylene woven bags and polypropylene woven sacks, according to the company's website.

babulfexpress@gmail.com

Appollo Ispat's earning zooms up 36.83pc

FE Report - 19 November'2014 Wednesday
The earning of Appollo Ispat Complex Limited, a company listed on the capital market in engineering category, has jumped by 36.83 percent.

The net earning of the company during the first quarter of the 2014-15 fiscal year rose to Tk 135.27 million against Tk 98.85 million of the corresponding period of previous fiscal (2013-14).

The Earnings Per Share (EPS) of the company during the said period under review was Tk 0.54 when the number of shares of the company was 250 million. During the same period of previous year, the company's EPS was Tk 0.66 having 150 million shares, said a press release.

The annual report shows, if the number of shares remained as low as  150 million during 2014-15 fiscal, the EPS could have increased to Tk 0.90.

Considering this, it is assumed that the company's net asset value per share would rise. The company witnesses surge in asset value as its burden on bank interest has been reduced by Tk 20 million because the company's liability has come down.

Besides, the company's has to pay less corporate taxes than before as it has to count 27.50 percent as income tax, down from 37.50 percent being listed on stock market.

For this, the company now saves up to Tk 20 million as income tax.

Meanwhile, the company is going to hold the annual general meeting (AGM) at Dream Holiday at Pachdona in Narsindhi on December 21, 2014 for taking the approval of shareholders for its recommended 15 percent stock dividend and also to approve other agenda.

DSEX dips below 4,900-mark

FE Report - 19 November'2014 Wednesday
Amid weak market sentiment, stocks fell further on Tuesday, with the key index of the premier bourse dipping below 4,900-mark after two months. Investors remained in a cautious mode amid declaration of some corporate earnings.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), dipped below the 'psychological' threshold of 4,900-point after September 18, shedding 18.60 points or 0.37 per cent to close at 4,898.82. DSEX shed 106.8 points in the last four consecutive sessions.

The other two indices also edged lower. DS30, comprising blue chips, dropped 15.04 points or 0.82 per cent to close at 1,814.93. DSE Shariah Index lost 6.23 points or 0.53 per cent to close at 1,150.34.

Turnover remained sluggish, and total turnover on DSE came down to Tk 6.27 billion, registering a decline of 9.26 per cent over the previous day's turnover of Tk 6.91 billion.

The investors mostly focused on power, engineering and pharma, the sectors that accounted for 25 per cent, 17 per cent and 15 per cent respectively of the day's total turnover.

International Leasing Securities said the market endured a typical bearish session, and the key index fell below 4,900-mark for the first time in the last two months with the investors left hanging with hopes of the market's U-turn.

Pessimism among the investors regarding the entire market situation also dragged the turnover, it added.

"Stocks ended the day moderately below the flat line fading the morning gain, as the investors upheld their cautious mode amid declaration of corporate earnings," said LankaBangla Securities.

It also mentioned that several stocks, which declared earnings number late last week, have started reacting to their earnings. In near terms, economic factors are acting as main trigger for market movements.

Inflation is going down, so are interest rates. International oil prices have fallen significantly, which could be advantageous for corporate profitability due to better margins, the stock broker opined.

IDLC Investments said: "As DSEX continued remaining below 5,000-point mark 'psychological' level, fear condensed amid investors and subsequently taking toll on market movements".

Among the large cap sectors, only fuel and power closed positive with 0.65 per cent gain. Telecommunication lost the most of 1.37 per cent. NBFIs and pharmaceuticals retraced 0.67 per cent and 0.16 per cent respectively. Banks as well as food and allied went down marginally by 0.07 per cent each.

Losers outpaced gainers, as out of the 305 issues traded, 147 declined, 125 advanced and 33 remained unchanged on the DSE floor.

Activities decreased in the major bourse, where volume was down by 8.18 per cent, but trade increased by 1.3 per cent. A total of 0.132 million trades were executed with 132.95 million securities of trading volume.

The total market capitalization of DSE stood at Tk 3,267.36 billion against Tk 3,273.36 billion in the previous session.

The new issue - Khan Brothers PP Woven Bag - was the most traded stock with shares worth Tk 588.97 million changing hands, followed by Jamuna Oil, Western Marine, SPCL and BEDL.

Khan Brothers was the day's highest gainer, posting a rise of 666 per cent, while BDCOM Online was the day's worst loser, slumping by 18.24 per cent.

The Chittagong Stock Exchange (CSE) also dropped for the 4th day with its Selective Categories Index - CSCX - lost 46.81 points to close at 9,243.24.

Losers beat gainers 1,140 to 64, with 20 issues remaining unchanged at the port-city bourse that traded 12.50 million shares and mutual fund units, with turnover value of Tk 512.73 million.

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Future of hybrid ICB unit certificates-II Is the schemes continuation in perpetuity justified or not?

FE Report - 19 November'2014 Wednesday
Mohammad Mufazzal
Is the schemes continuation in perpetuity justified or not?



The policy about management of capital market-related trust funds, in the nature of Mutual Funds (MFs) and unit funds, is spelt out under securities rules.

But this, according to some market-analysts, is not being properly adhered to, in the case of unit certificates of the government-owned Investment Corporation of Bangladesh (ICB) while fixing the surrender value.

Such analysts largely share the concern of many certificates-holders over the prevailing state of affairs about ICB Unit Fund (IUF). 

Meanwhile, an open-ended fund, under the provisions of Section 51 (2) of Mutual Fund (MF) Rules, 2001, is to be wound up if more than 75 per cent of related holders surrender their units.

Besides, the securities market regulator or the trustees can take the decision about winding up of any such trust fund, if it becomes necessary, for the sake of upholding unit holders' interest.

According to some forward-looking market observers, the Bangladesh Securities & Exchange Commission (BSEC), the regulatory body for the country's capital market, can set a time-limit for winding up the long-running IUF of a hybrid type for ensuring consistency, uniformity and transparency of such a kind of MF.

The existing holders of ICB unit certificates should not also be deprived of their legitimate claims, they noted.

By setting a time-frame for winding up the IUF, the BSEC can consider giving the ICB a choice between letting their existing unit certificate-holders either to opt for any other new product or investment or encashing their existing units, both at actual NAV, they suggested.

Such a move, according to such observers, will help further deepen and widen they base of the country's capital market on some innovative lines. No investors' trust fund, whatever may be its kind, should be allowed to continue in perpetuity, they added.

The securities market watchdog, as competent sources and concerned quarters including the investors do strongly feel, can not keep its eyes shut to the operations of an unlisted security like that of IUF unit certificates that have some strong traits of being considered as a MF.

The existing holders of the certificates of the IUF should, on no logical ground, be deprived of the benefits of market-gains that belong to them, according to them.

However, the watchdog cannot also ignore the possible impact, positive or negative, of this security on the market, in the event of its unbundling or fixing a tenure for folding up of its operations, they added.

"The IUF is beyond our overall supervision. However, we will send a letter to the ICB for submitting the copy of the agreement under which the IUF was floated," one competent source within BSEC told this correspondent.

The BSEC source preferred not saying anything about the operation of the IUF or commenting on the ICB's policy about fixation of the 'surrender value' of the IUF's units.

The officials of the BSEC's concerned department said the ICB do not give annual fees for the IUF.

For the ICB, the hard matters of consequence, according to relevant sources, remain to be: ensuring dividend -- either in cash or in the form of new 'unlisted' units or certificates -- at a higher rate, however modest it may be -- in every successive year to their existing holders, avoiding thereby a 'too heavy' one-time load on its financial operations.

A strong fear, meanwhile, persists among the concerned ICB personnel about market destability, in the event of any large scale 'surrender' of its only 'flagship security' by its holders for reaping 'market' or 'capital' gains.

On its part, the ICB has otherwise an impressive track-record, largely through its subsidiaries, of being quite proactive, some close observers of the market noted.

It has been playing a 'all-weather' supportive role for ensuring both stability and liquidity, particularly in times of adversities of the market, they added.

A member of the relevant committee of the ICB, meant to set the NAV and fix surrender value of the units of the IUF, claimed that the surrender value or repurchase rate of its unit certificates is fixed by evaluating the NAV, period of holding units and some other circumstances as well.

Asked, whether the unit holders who are willing to surrender units are being deprived of 'due' benefits, the member said this issue is a matter of perception.

"However, the surrender value is periodically fixed to encourage long-term investment and to ensure higher rate of dividend on a steady and sustained basis," he told the FE, asking not to be named.

ICB managing director Md. Fayekuzzaman said they manage the IUF in a balanced way.

"Tendency of surrendering units may be triggered if the re-purchase rate is fixed in an imbalanced way. This will also have adverse knock-on effects on the capital market," Mr. Fayekuzzaman observed.

The IUF, he said, plays an important role in promoting industrialisation and also developing the capital market, while providing a reasonable rate of return to the unit-holders on a sustainable basis.

Meanwhile, the job of the auditors -- K. M. Alam & Co and Rahman Mostafa Alam & Co -- that have been appointed to audit the financial statements of the IUF, is mainly to examine statements of its assets, liabilities and profits while authenticating the financial statements, according to sources.

"I think the ICB fixes the surrender value or repurchase rate, as per the conditions set under an earlier agreement," said an auditor requesting for anonymity.

The ICB charges Tk 1.25 per unit (net outstanding) as management fees. It is also the custodian of all assets of the fund.

The ICB realised about Tk 91.42 million and Tk 149.98 million as management fees for the year that ended on June 30, 2013 and on June 30, 2014, respectively. It also received custodial fees worth above Tk 16.73 million for the year that ended on June 30, 2014.

The dividend rate on every unit of the IUF was Tk 22.00 in the financial year (FY), 2008-09, Tk 26.00 in FY 2009-10, Tk 30 in FY 2010-11, Tk 32.00 in FY 2011-12, Tk 36.50 in FY 2012-13 and Tk 40 in FY 2013-14.

In FY 2012-13 and FY 2013-14, fresh units under the CIP that were issued stood, in value terms, at Tk 799.9 million and above Tk 1.01 billion respectively.

Two years back, the ICB introduced 'nominee system' among family members, only to avoid difficulties, consequent upon the death of any or of the unit-certificate holders.

Asked, whether the IUF is an open-ended trust fund or not, ICB managing director Mr. Fayekuzzaman said in the sense of a MF, the IUF cannot be called an open-ended one as only the existing unit-holders are allowed to receive new units or sell their existing ones.


mufazzal.fe@gmail.com

Shahjibazar goes to spot market

Daily Star - 19 November'2014 Wednesday

Shahjibazar Power's share trade will be relegated to the spot market from the public market today.
This means that investors will now have to pay cash for the company's share transactions and have a settlement period of just one day.
Bangladesh Securities and Exchange Commission (BSEC) took the decision yesterday, after looking into the unusual price hike of Shahjibazar shares recently.
The power company's share prices rose 828 percent to Tk 338.8 since its listing on the stockmarket on July 15.
The BSEC also marked Shahjibazar Power stocks as non-marginable, meaning, investors cannot buy those on credit.
Additionally, all stockbrokers will have to submit daily details on the sell and buy of each Shahjibazar share to the stock exchanges, which will send the report to the regulator the following day.
On November 9, BSEC had tasked a two-member committee to report on the unusual price hike of Shahjibazar Power within 15 working days.

The BSEC had earlier found anomalies in the company's accounts and spent Tk 1.72 lakh for a new audit by A Qasem and Company Chartered Accountants.
The company had inflated net profits by Tk 11.68 crore in its financial reports, according to BSEC-appointed auditors, for which the regulator fined five directors of the company Tk 10 lakh each, and the managing director Tk 5 lakh.
Shahjibazar Power shares also faced a trade bar from August 11 to October 20 for the same reason.
The audit firm found that the power company's real net profit was Tk 16.87 crore, with real earnings per share of Tk 1.48, instead of the published numbers.
Shahjibazar raised Tk 31.7 crore from an initial public offer to pay off bank loans.
Meanwhile, stocks continued to fall for the fourth day as investors remained cautious amid corporate declarations, leading to Tk 628 crore in turnover yesterday, a 9 percent decline from the previous day.
DSEX, the benchmark general index of the DSE, closed at 4,898, after shedding 18 points or 0.37 percent.
DSES, the shariah index of the premier bourse, lost 6 points or 0.53 percent, to finish the day at 1,150 points.
Losers beat gainers 147 to 125 and 33 remained unchanged out of the 305 issues that traded on the Dhaka bourse.
A total of 1.32 lakh trades with 12.26 crore shares and mutual fund units took place on the DSE.
Chittagong Stock Exchange also declined yesterday with its selective categories index, CSCX, shedding 46 points to close at 9,243.
Published: 12:00 am Wednesday, November 19, 2014

Khan Brothers flies high on debut despite dismal profit

Daily Star - 19 November'2014 Wednesday

Share prices of Khan Brothers PP Woven Bag Industries soared by eight times on its trading debut at the stock exchanges yesterday, although the company's net profit declined in the first quarter.
Listed with a face value of Tk 10 each, Khan Brothers' share prices ranged between Tk 47 and Tk 80, before closing the day at Tk 76.6 on the Dhaka Stock Exchange.
However, the company's net profit fell 9.54 percent to Tk 2.18 crore in the first quarter to September, compared to the same period in the previous year, according to a posting on the DSE website.
Investment on the new share has become too pricey, as the price earnings (PE) ratio stood at over 50 with the jump in the company's share prices on the very first day.
The PE ratio determines the time an investor needs to wait to get back investment, and it is used to gauge the extent of risk an investment might entail.
“Investors have the right to choose the price at which they will purchase shares. But they should be careful in investing in a company that has been listed without premium and if its share price rises manifold,” said Faruq Ahmad Siddiqi, a former chairman of Bangladesh Securities and Exchange Commission (BSEC).
Many companies have a tendency to show inflated accounts in their initial public offering (IPO) prospectuses to make their offerings attractive, he added.

“The regulator should examine or re-audit to see whether such a thing has happened in the case of the Khan Brothers IPO,” he said.
On the decline in the company's first quarter earnings, Tofayel Kabir Khan, managing director of Khan Brothers, said the disclosed earnings were un-audited and it may be that a company's earnings fall in any given quarter.
“Our business is going well. We are installing new machinery with the IPO proceeds. So, the net profit will increase at the end of the year.”
A total of 96.20 lakh shares worth Tk 58.89 crore traded on the premier bourse yesterday, with Khan Brothers securing the top position on the turnover leaders' list.
It is the 10th company listed in the miscellaneous category, which accounts for around 2 percent of total market capitalisation at the DSE.
The company raised Tk 20 crore by floating 2 crore ordinary shares of Tk 10 each. BSEC approved the IPO on June 24.
The company's IPO proceeds are being used for business expansion and repayment of high interest-bearing loans.
Published: 12:00 am Wednesday, November 19, 2014

Tuesday, November 18, 2014

Stocks fall for 3rd day on selling pressure


New Age - 18 November'2014 Tuesday


Dhaka stocks declined for the third trading session on Monday due to a selling pressure.
The key index of Dhaka Stock Exchange, DSEX, finished at 4,917.42 points, shedding 0.93 per cent or 46.47 points.
Stockbrokers said investors, following the recent downbeat vibe at the market, opted to go slow in taking their next investment decisions.
Mixed earning disclosures by the listed companies also depressed investors, they said.
‘Although, there was no negative news for the capital market, the market declined on the day due to profit-taking share sell-offs by some investors,’ EBL Securities managing director Sayadur Rahman told New Age.
‘As the market rally from July to September had gained around 1,000 points, so profit-taking is still going on and that is very normal,’ Sayadur said.
DS30, the blue-chip index of the DSE, fell by 1.22 per cent, or 22.68 points, to finish at 1,829.97 points on the day.
The Shariah index of the bourse, DSES, closed at 1,156.57 points, declining by 0.87 per cent or 10.19 points.
Of the 304 shares and mutual funds traded on the day, 68 advanced, 200 declined and 36 remained unchanged.
Turnover at the bourse declined to Tk 691 crore on the day compared with that of Tk 753.02 crore in the previous trading session.
‘The market continued to slip down, despite somewhat slowing selling pressure and turnover,’ IDLC Investments said in its daily market commentary.
‘Additionally, news related to soaring defaulted loans in the banking industry kept investors re-thinking before further investment,’ it said.
‘Besides, today’s quarterly earnings disclosures didn’t match with investors’ expectations,’ said IDLC.
‘The market ended the day in red territory again as investors remained confused about future market directions,’ LankaBangla Securities said in its daily market analysis.
‘Despite some mid-cap and large-cap stocks registering favourable earnings in the latest quarter, overall investors’ sentiment remains bearish,’ it said.
Shahjibazar Power Company led the turnover leaders on the day with its shares worth Tk 54.75 crore changing hands.
Western Marine Shipyard, Jamuna Oil, DESCO, Titas Gas, Pharma Aids, Navana CNG, Barakatullah Electro Dynamics, Saif Powertec and Fu-Wang Foods were among the other turnover leaders.
JMI Syringes & Medical Devices gained the most on the day with a 9.95-per cent rise in its share price, while Agni Systems lost the most, shedding 13.37 per cent.

BSEC rejects DSE plea for TRAC-holders’ fee cut

New Age - 18 November'2014 Tuesday


The Bangladesh Securities and Exchange Commission on Monday declined to consider a Dhaka Stock Exchange’s proposal to reduce Trading Right Entitlement Certificate holders’ annual fees.
The capital market regulator informed the DSE its decision while holding a meeting with the prime bourse, BSEC officials told New Age.
As per the demutualisation scheme approved by the capital market regulator, TRAC-holders annual fees were set at Tk 50,000.
The DSE, following requests from the TRAC-holders, sought permission from the capital market regulator in this regard.
The commission rejected the proposal as it is conflicting with the demutualisation scheme, said a BSEC official.
‘The commission also asked the bourse to check legal aspects before placing any proposals to the commission,’ he said.
‘The meeting was as a part of the commission’s regular interaction with the bourse,’ DSE managing director Swapan Kumar Bala told reporters after the meeting.
‘The way of upholding public interest while making any business-related decision and if any business decision of the bourse conflicts with the public interest were also discussed at the meeting’ said Swapan.
The meeting led by BSEC chairman M Khairul Hossain also discussed about different demutualisation-related issues.
BSEC commissioners Amzad Hossain, Arif Khan and Md A Salam Sikder, and DSE chairman Siddiqur Rahman Miah, independent directors Ruhul Amin and M Kaykobad were present at the meeting.

 



The Bangladesh Securities and Exchange Commission on Monday declined to consider a Dhaka Stock Exchange’s proposal to reduce Trading Right Entitlement Certificate holders’ annual fees.
The capital market regulator informed the DSE its decision while holding a meeting with the prime bourse, BSEC officials told New Age.
As per the demutualisation scheme approved by the capital market regulator, TRAC-holders annual fees were set at Tk 50,000.
The DSE, following requests from the TRAC-holders, sought permission from the capital market regulator in this regard.
The commission rejected the proposal as it is conflicting with the demutualisation scheme, said a BSEC official.
‘The commission also asked the bourse to check legal aspects before placing any proposals to the commission,’ he said.
‘The meeting was as a part of the commission’s regular interaction with the bourse,’ DSE managing director Swapan Kumar Bala told reporters after the meeting.
‘The way of upholding public interest while making any business-related decision and if any business decision of the bourse conflicts with the public interest were also discussed at the meeting’ said Swapan.
The meeting led by BSEC chairman M Khairul Hossain also discussed about different demutualisation-related issues.
BSEC commissioners Amzad Hossain, Arif Khan and Md A Salam Sikder, and DSE chairman Siddiqur Rahman Miah, independent directors Ruhul Amin and M Kaykobad were present at the meeting. - See more at: http://newagebd.net/67687/bsec-rejects-dse-plea-for-trac-holders-fee-cut/#sthash.ilRkTysL.dpuf

BSEC asks CDBL to visit DPs every month

New Age - 18 November'2014 Tuesday


The Bangladesh Securities and Exchange Commission has asked Central Depository Bangladesh Limited to visit depository participants every month to monitor compliance of the entities, said a DSE web post on Monday.
The capital market regulator in its directive said, ‘The BSEC has decided that CDBL will visit the depository participants every month to monitor whether the DPs are properly complying with the depository act, rules and regulations.’
‘Based on the visit, CDBL will submit a summary report on measures taken by it to the BSEC within the first 10 days of next month,’ it said.
Asked, a CDBL official told New Age,
‘We have heard about the commission’s directive, but yet to receive it.’
‘Usually CDBL checks and verifies information of the DPs before the BSEC renews the licences of the entities,’ he said.
Once the responsibility of inspecting the DPs will be on CDBL, it will also help release some work pressure from the BSEC, he said.
As of Monday, total DPs registered with the CDBL was 464. The number includes full service DP, full service exchange DP, custodian DP and treasury DP.
CDBL is responsible to ensure efficient delivery, settlement and transfer of securities through computerised book entry system including recording and maintaining securities accounts and registering transfer of securities, changing the ownership without any physical movement or endorsement of certificates and execution of transfer instruments.