Dhaka, Bangladesh (BBN)– Dhaka Stock Exchange (DSE) has formed an expert panel for scrutinizing the companies’ initial public offering (IPO) prospectus and a jury board for selecting best 30 listed firms for ensuring more transparency and giving awards respectively.
At the same time, the country’s prime bourse—DSE— has made some proposals regarding the approval by the Securities and Exchange Commission (SEC) to the proposals of merger, acquisition and issuance of right share for ensuring investors’ interest.
The decisions came at a board meeting on Wednesday chaired by DSE President Md. Rakibur Rahman.
“Presently, the country’s stock market is passing a crisis period. The decisions have been taken by the DSE board for ensuring more transparency and accountability in the activities of listed companies,” Rakibur Rahman told reporters after the meeting.
The DSE has finalized a jury board of thirteen members, led by Former advisor to caretaker government and ex-SEC Chairman AB Mirza Azizul Islam, which will select the best 30 listed firms for giving them awards every year.
The DSE will finalize the terms of reference (ToR) in selecting the best 30 listed firms within next one week.
The other members of the jury board are: former SEC Chairman Faruq Ahmad Siddiqi, Former FBCCI President Annisul Huq, Deputy Governor of Bangladesh Bank Abul Quasem, the editor of the Financial Express Moazzem Hossain, the vice chancellor of National University Professor Dr. Kazi Shahidullah, the president of ICMAB Professor Mamtaz Uddin Ahmed, the immediate past president of MCCI Abdul Hafiz Choudhury, the immediate past president of ICAB Dr. Jamaluddin Ahmed, two professors of Dhaka University— Dr. M A Baqui Khalily and Farid Uddin Ahmed— and the former president of ICAB Nasir Uddin Ahmed.
The DSE has finalized a panel of fourteen experts who will scrutinize the IPOs (initial public offerings) and make recommendation through the DSE board whether the Securities regulator should approve an IPO proposal or not.
“So far, with the help of listing department the DSE listing committee has carried out the job of making recommendations on IPO statuses of the company willing to go public. From now on the expert panel will do the job after scrutinizing the IPO prospectuses,” Mr. Rahman.
He said the move has been taken so that a company cannot go public with high price, which does not match with its fundamentals.
As per DSE president, the DSE board will also make a discussion on the recommendations made by the expert panel on an IPO prospectus and finally will send it to the SEC.
“The DSE management will fix five experts from the panel to scrutinise an IPO prospectus. But an expert will not be included in a committee to analyse a company’s IPO prospectus if he somehow has a relation with that company,” DSE president said.
The 14-member expert panel included Professor Momtaz Uddin Ahmed FCMA, Dr. Jamaluddin Ahmed FCA, Nasir Uddin Ahmed FCA, Professor Dr. Habibur Rahman FCMA, Akhter Sohel Kashem FCA, Adeeb H. Khan FCA, Dr. M A Baqui Khalily, Professor Dr. Sadiqul Islam FCMA, Dr. Swapan Kumar Bala FCMA, Anisur Rahman, Mr. Ashrafuzzaman FCA, Mohammad Salauddin Chowdhury, Md. Ashraf Uddin Ahmed FCA and Akter Hossain Sannamat FCA.
The DSE also made a proposal for ensuring larger EPS (Earning per share) of mother company through the execution of merger and acquisition.
BBN/SSR/AD-26Apr12-8:03 am (BST)