Dhaka, Bangladesh (BBN) – The board of directors of country’s premier bourse has recommended 10 percent cash dividend for its shareholders for the year ended on June 30, 2016.
“The Dhaka Stock Exchange (DSE) has recommended 10 percent cash dividend for the fiscal year 2015-16 at its meeting held recently,” a DSE director told the BBN.
The final approval will come during the annual general meeting (AGM) scheduled to be held on March 23 at the DSE newly constructed building situated at Nikunja in the capital Dhaka.
This will be the second dividend payout for its shareholders since the demutualisation of the bourse, if the recommendation is approved at the AGM.
The Dhaka bourse, which demutualised in 2013, also disbursed 10 percent cash dividend for its shareholders for the fiscal year 2014-15.
The premier bourse also reported earnings per share (EPS) at BDT 0.66 for the year ended on June 30, 2016 which was BDT 0.75 in the previous year.
During the year 2015-16, the DSE’s net profit stood at BDT 1.19 billion which was BDT 1.41 billion in the previous fiscal year.
Accordingly, its earnings declined by 15.26 percent or BDT 215.8 million compared to previous fiscal year.
Most of the income was generated from interest on fixed deposits, rather than the bourse’s core business, DSE officials said.
The demutualisation scheme was approved by Bangladesh Securities and Exchange Commission (BSEC) in 2013, and the law on the issue was passed in 2012, to bring transparency to the stockmarket.
Demutualisation is a way to separate the bourses’ management from ownership. It transforms a stock exchange into a profit-oriented company owned by shareholders and ensures alternative business models and operational efficiency.
Prior to demutualisation, Bangladesh’s stock exchanges were non-profit cooperatives, owned by the exchange members, who were usually stockbrokers.
BBN/SSR/SR