Administration and ownership of stock markets are going to be finally delinked with the Bangladesh Securities and Exchange Commission (BSEC) finalising a demutualisation scheme.
BSEC Executive Director and Spokesperson Saifur Rahman said the commission had cleared the scheme after hearing all sides and studying the proposals given by the Dhaka and Chittagong stock exchanges
The scheme will transform the Dhaka and Chittagong stock markets into companies.
The two bourses will now have to an emergency general meeting each within 30 days or Oct 29. They exchanges will have to submit their schemes approved at the meeting to the Registration of Joint Stock Companies within a week of the approval.
The stock exchanges would become public limited company within 14 days of being registered with the RJSC.
A new board of directors will be elected within 90 days of the stock exchanges becoming public companies.
The idea of demutualisation was floated after the stock markets were rocked by unusual volatility in 2011. Parliament passed the ‘Exchanges Demutualisation Bill, 2013’ on Apr 29 this year to ensure stability.
The idea had first surfaced in 1993. Stock exchanges in over 50 countries, including India, Pakistan, Singapore and New York, have already been demutualised.
Any legal infringement would invite a fine of Tk 1 million and could also lead to the cancellation of registration.
Any Director, Member, Chief Executive Officer, employees, members of any committee or shareholder would also be liable to be fine Tk 1,00,000 if they break the law.
Source: Bd news24
