DSE directed to hold release of proceeds to 3 members

Bangladesh Securities and Exchange Commission has directed Dhaka Stock Exchange to postpone disbursing to three DSE members their share of the proceeds the stock exchange made recently through selling 25 per cent of its shares to a Chinese consortium at Tk 947 crore.
A senior BSEC official said the brokerage firms faced the BSEC action for their non-compliance with rules.
He said the commission was in the process of taking the same step against a number of other members of the bourse on the same ground.
The commission issued the directive as the three brokerage houses — Sharp Securities, Shyamol Equity Management and Premier Leasing Securities Broking —did not adjust the shortfalls in their consolidated customers’ accounts for long time despite giving repeated warnings by the regulator, the BSEC official said.
The commission also directed the premier bourse to hold dividend disbursement by DSE to the three members.
BSEC found that Premier Leasing Securities Broking Limited fell short in consolidated customer accounts by Tk 3.7 crore until December 31, 2017, making it risky for its clients.
If the members fail to adjust the shortfalls within the stipulated time, the free-limit facilities would be suspended for the three brokerage houses, the BSEC official said.
According to the TREC Holder’s Margin Regulations, 2013, the free limit must be Tk 10 crore only in respect of the stock exchange TREC holders’ margin deposit with the stock exchange on each trading day based on the total buy exposure.
Sharp Securities director Mozammel Haque Bhuiyan told New Age that the brokerage house had already adjust the shortfall in its consolidated customers’ account and sent details to the commission to lift the restriction.
Shyamol Equity Management managing director Sajedul Islam said that they would adjust the shortfall in the account very soon to comply with the BSEC rules.
On September 4, the Chinese consortium of Shenzhen and Shanghai stock exchanges joined DSE as its strategic partner through buying 45,09,44,125 shares of the bourse at Tk 21 each. The consortium signed share purchase agreement with DSE on May 14.
After observing the current sluggish trend at the capital market, most of the DSE members agreed to invest the whole proceeds in the market if the government exempted them from paying 15 per cent tax on the proceeds, DSE 
sources said.
The finance ministry asked National Board of Revenue to consider 10 per cent tax exemption on condition that the proceeds would be invested in the market and kept under lock-in for 3 years.
NBR is working on the issue and may issue a statutory regulatory order in this regard next week, 
sources said.
Under the demutualisation of DSE, 40 per cent shares of the bourse were credited to the DSE members’ accounts, while the remaining 60 per cent were kept in a blocked account. The Chinese consortium bought 25 per cent shares from the blocked account and the bourse would float the remaining 35 per cent through an initial public offering.
Source: http://www.newagebd.net

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