Dhaka, Bangladesh (BBN)-The Dhaka Stock Exchange Wednesday made a number of proposals to the Bangladesh Securities and Exchange Commission (BSEC) to facilitate the depositors’ interest.
The proposals including the reduction of fee charged by Central Depository Bangladesh Limited (CDBL) and tax holiday facility for the Dhaka Stock Exchange, officials said.
DSE, the premier bourse of Bangladesh, made the proposals during a meeting held with the BSEC.
The ongoing market situation was also discussed at the meeting chaired by the BSEC Chairman professor M Khairul Hossain.
The issue calculating the bank’s exposure to the capital market was also discussed along with other proposals made by the premier bourse, said Mohammad Saifur Rahman, a BSEC executive director and spokesperson.
“The securities regulator time to time sits with the central bank. The regulator and the bourses can sit with the central bank in order to clear the calculation of exposure limit if it requires,” Rahman said.
According to the meeting participants, the other proposals are: the implementation of new IPO (initial public offering) application process, the opening of new branches of brokerage firms and quota facility for stock dealers in the IPO.
The DSE and the securities regulator have discussed the possible investment scopes for merchant banks and stock brokers in the meeting.
The premier bourse has proposed to reduce the fee charged by CDBL as the cost of business of stock brokers increased.
In this regard, the securities regulator said the charge of CDBL might be re-fixed considering the fees charged in the neighbouring countries.
Following the demand of opening new branches, the BSEC said the newly started brokerage firms can be allowed to open a branch.
The securities regulator made the submission of applications for IPOs mandatory through the brokerage firms from April 1.
The regulator has a plan to complete the whole IPO process including the distribution of refund warrants within 25 days, said BSEC chief.
The securities regulator said presently there is no possibility of allowing stock dealers to avail the quota facility in the public offering of the companies.
According to another proposal, the stocks brokers are unable to recover the margin loans provided to their clients.
But the bonus dividends of such clients are deposited into their own bank accounts.
Merchant banks are receiving the bonus dividends of their clients, who are not repaying margin loans, their own accounts.
So, the DSE brokers have sought the opportunity of realizing the clients’ bonus dividends through their own portfolios.
BBN/BB/SS-4Feb15-10:20pm (BST)