Dhaka, Bangladesh (BBN) – The Dhaka Stock Exchange (DSE) on Sunday launched the over-the-counter (OTC) market – a separate trading floor– to facilitate trading of the non-listed and de-listed companies.
Shares of companies that have been de-listed from the premier bourse will be placed on the OTC market in the first phase. In the next phase, shares of non-performing and non-operational companies that will be removed from the main board will be traded on the new OTC floor.
All the de-listed companies from the secondary market will be listed with the OTC market, according to the Securities and Exchange Commission (SEC) directive issued on the day.
The directive said DSE shall provide OTC facilities to the issuers of the securities already de-listed by DSE, excluding those securities which have been de-listed upon application of the issuers concerned.
Since 1994, the DSE de-listed 36 companies. Of those, four companies including Eagle Box, EL Chemalia and Rabya Flour were de-listed as per their applications.
The de-listed companies include Chad Textile, Chad Spinning, Panther Steel, Anwar Jute, Specialised Jute, Paper Corn, Delta Jute, Oshia Jute, Howlader PVC, Aroma T, Swan Textile, PPI, Milian Tanneries, New Dhaka, Shamsher Jute Mill, Ahad Jute Mills, Islam Jute Mills, High Speed Ship, Mutual Jute Spinners, Bengal Biscuit, Karim Pipe, AB Biscuit, Dhaka Vegetable, Paragon Leather, National Oxygen, ASTM, Jem Knitwear, GH Chemicals, Mark Bangladesh, Texpic Industries and Meghna Vegetables.
Under the OTC trading manual, selling stock-dealer or stock-broker will submit salable securities to the exchange at OTC along with transfer form with signature duly verified and a sale order mentioning name of securities, quantity, rate, between 10:00 am and 12:00 noon on each trading day.
After receiving the salable securities, the DSE at OTC will record the order in the database and provide an official receipt to the respective stock broker or stock dealer.
The sale order will be displayed on DSE website and in the monitors at OTC.
Interested buyers can either check the DSE website or check the OTC monitors and pick the securities of their choice. After that, the buying stock dealer or stock-broker will submit a buy order to the OTC.
The buying stock-dealer or stock-broker shall make full payment, including the commission or charges, to the exchange through bankers pay order or demand draft on the day of buy of securities at OTC between 10:00 pm and 12:00 noon.
The OTC shall deliver the concerned securities to the buying stock-dealer or stockbroker on the working day following the day of crediting the amount of the pay order or demand draft in the exchange’s bank account maintained for this purpose.
The buying stock-dealer or stock-broker shall deposit the securities with the issuer company for registering the securities in buyers name, or in the name of the customer within three working days of getting the securities.
The buying stock-dealer and stock-broker must collect deposit receipt at the time of depositing the securities.
After that, the stock-dealer or stock-broker submits a copy of deposit receipt concerned securities to the OTC within next two working days of issuance of such receipts.
The issuer company shall transfer the deposited securities in the name of the applicants and keep ready for delivery of the securities to the depositor within five working days of receiving the securities providing acknowledged copy to the OTC and the stock-dealer or stock-broker.
After getting the acknowledged copy, both buying stock-dealer or stock-broker and selling stock-dealer or stock-broker will sign the trade confirmation copy that is maintained by OTC.
The OTC shall make payment of the due amount to the selling stock-dealer or stockbroker by cheque on the first working day following the receipt of confirmation of shares from the issuer company unless any written objection arises.
BBN/SS/SI/AD-07September09-1:50 am (BST)