Demutualisation of two stock exchangesGovt insists bourses to submit concept paper within
The government has been insisting two stock exchanges to submit demutualisation concept paper to the banking division within December this year aiming to remove the conflicting interests in the bourses.
The move to demutualise the bourses was taken aiming at separating ownership, management and trading rights of the members of the two bourses.
The decision on demutualisation was taken at a meeting last week with finance minister AMA Muhith in the chair. DSE and CSE authorities presented road maps on demutualisation.
As per the meeting regulations, concept paper should include demutualisation of elements of law. After receiving concept papers on demutualisation of two stock exchanges, the government will take necessary actions to introduce new system.
Banking division secretary Shafiqur Rahman Patwary told daily sun on Sunday that they are serious about demutualisation of the exchanges to enhance their competitiveness to global standards by introducing market oriented products and services.
“We hope that the stock market would stand on strong footings with demutualisation of the bourses,” he said, adding that a person cannot be a stockbroker as well as the owner of breakage houses simultaneously.
“The finance minister really means demutualisation within December this year through approved bill in parliament this year to ensure smooth operation of the stock market,” he noted.Former adviser to the care taker government Dr AB Mirza Azizul Islam at the meeting said constituting a national stock market could serve the share investors and stock brokers. Former chairman of the SEC Faruk Ahmed Siddique said that government would not go for demuluatisation to two stock exchanges so hurry.
“Stakeholders of exchanges should prepare concept papers and elements of law should be in it,” he added. The premier bourse in its presentation said it can complete the demutualisation process by 2012, while the bourse at the port city said it can finish the job in 40 weeks. Bangladesh's stock exchanges are now non-profit cooperative organisations, owned by the exchange members who are usually stockbrokers. The Dhaka Stock Exchange was incorporated in 1954 and the trading on the bourse started in 1956, while the Chittagong Stock Exchange was established in 1995.
The bourses' responsibilities include listing of companies, providing screen-based automated trading of listed securities and trade settlement.
Demutualisation of two stock exchanges came into discussion after the recent slump in share prices.
The government has been insisting two stock exchanges to submit demutualisation concept paper to the banking division within December this year aiming to remove the conflicting interests in the bourses.
The move to demutualise the bourses was taken aiming at separating ownership, management and trading rights of the members of the two bourses.
The decision on demutualisation was taken at a meeting last week with finance minister AMA Muhith in the chair. DSE and CSE authorities presented road maps on demutualisation.
As per the meeting regulations, concept paper should include demutualisation of elements of law. After receiving concept papers on demutualisation of two stock exchanges, the government will take necessary actions to introduce new system.
Banking division secretary Shafiqur Rahman Patwary told daily sun on Sunday that they are serious about demutualisation of the exchanges to enhance their competitiveness to global standards by introducing market oriented products and services.
“We hope that the stock market would stand on strong footings with demutualisation of the bourses,” he said, adding that a person cannot be a stockbroker as well as the owner of breakage houses simultaneously.
“The finance minister really means demutualisation within December this year through approved bill in parliament this year to ensure smooth operation of the stock market,” he noted.Former adviser to the care taker government Dr AB Mirza Azizul Islam at the meeting said constituting a national stock market could serve the share investors and stock brokers. Former chairman of the SEC Faruk Ahmed Siddique said that government would not go for demuluatisation to two stock exchanges so hurry.
“Stakeholders of exchanges should prepare concept papers and elements of law should be in it,” he added. The premier bourse in its presentation said it can complete the demutualisation process by 2012, while the bourse at the port city said it can finish the job in 40 weeks. Bangladesh's stock exchanges are now non-profit cooperative organisations, owned by the exchange members who are usually stockbrokers. The Dhaka Stock Exchange was incorporated in 1954 and the trading on the bourse started in 1956, while the Chittagong Stock Exchange was established in 1995.
The bourses' responsibilities include listing of companies, providing screen-based automated trading of listed securities and trade settlement.
Demutualisation of two stock exchanges came into discussion after the recent slump in share prices.