DSE Proposes ATB Reforms for Enhanced Trading

Industry: Stock Brokerage
Company: Dhaka Stock Exchange (DSE)
Company Intelligence Tag: Regulatory Insights

The Dhaka Stock Exchange (DSE) is proactively advocating for a series of regulatory modifications to reinvigorate trading on the Alternative Trading Board (ATB). Within a span of two weeks, the DSE is set to submit a comprehensive proposal aimed at fostering trading momentum, enhancing transparency, and addressing existing ambiguities within the ATB framework.

Among the proposed changes, the DSE is seeking to revise the restriction that currently prohibits individual shareholders from selling their holdings within three months of purchase on the ATB. Additionally, the DSE is pushing for a shift in the circuit breaker mechanism, suggesting that it be based on the closing price of the previous session, akin to the approach taken on the main board. The DSE also aims to instill clarity regarding the offloading of company shares, suggesting a stipulated timeframe for releasing the remaining 39% of outstanding shares after an initial 10% offload. Such a provision aims to mitigate investor confusion and ensure sponsor-directors do not exploit timing advantages. The ATB, launched in January, has only seen two securities listed so far, and trading activity has been lackluster.

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