Dhaka Bourse to Develop Tradeable Capital Market Indices

Image: Bizbangladesh.net
The Shanghai and Shenzhen bourses, as strategic partners, will provide technical support to help the Dhaka Stock Exchange develop the new indices.

The DSE (Dhaka Stock Exchange) plans to introduce new indices for the Bangladesh capital market and to make them tradeable, reported local media.

The new indices will provide investors greater opportunities to profit under any market conditions and lower the risk of exposure to extreme volatility, the report said.

Only eligible investors such as financial institutions, stock dealers and other institutions approved by the BSEC (Bangladesh Securities and Exchange Commission) will be allowed to participate in index trading, DSE officials said.

The decision to introduce the new indices was made following a 4 July meeting with DSE’s strategic partner, a Chinese consortium comprising the SZSE (Shenzhen Stock Exchange) and SSE (Shanghai Stock Exchange) which acquired a 25 percent stake in the DSE last year.

The Chinese consortium will support the development of the new indices, including to provide the technical support needed to implement the plan.

It will also display the new indices on their websites to promote the Bangladesh capital market, as well as to facilitate the development of new wealth management products based on the indices.
Source: https://www.regulationasia.com

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