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The Financial Express

DSE strategic partner

BSEC body reports back on Chinese Consortium offer

| Updated: March 17, 2018 12:33:18


BSEC body reports back on Chinese Consortium offer

The appraisal committee of the securities regulator submitted on Thursday its report on the Chinese Consortium's proposal to be a strategic partner of the premier bourse DSE.

A four-member committee of the Bangladesh Securities and Exchange Commission (BSEC) submitted the report to the commission after looking into the Chinese Consortium's proposal.

"The committee has submitted its report and now the regulator will take the final decision regarding accepting or rejecting the Chinese Consortium as strategic partner of the Dhaka Stock Exchange (DSE)," a BSEC official said.

An informed source said the interest of the DSE could have been underestimated, if the appraisal body did not look into the factors going against the existing rules and regulations.

"The exchange's interest has been secured after the regulatory committee addressed the issues and subsequently the Chinese Consortium excluded the contradictory conditions from its proposal," the source said.

It said the appraisal committee found the exchange's negligence in securing the interest of the premier bourse.

The source also said following the regulatory query, the DSE submitted its explanation to the BSEC stating that the Chinese Consortium excluded the contradictory conditions from its proposal.

"Without taking the board's approval, the premier bourse sent the revised proposal to the BSEC. The DSE, however, later placed the revised issues before the board," the source added.

On February 10 last the DSE's board of directors approved the Chinese consortium's proposal as it qualified in the bidding to be a strategic partner of the bourse.

The Chinese consortium comprising Shenzhen Stock Exchange and Shanghai Stock Exchange offered Tk 22 per share, along with a technical offer for free, for the 25 per cent stake of the DSE.

The BSEC officials said the price that the consortium offered would not be exactly Tk 22, if the DSE disburses dividend for the latest closing year.

The BSEC's appraisal body also sought the exchange's explanation on some conditions of the Chinese Consortium's proposal 'contradictory' with the existing rules and regulations.

Later, the bid-winning consortium agreed to exclude and relax their conditions.

On consent from the Chinese consortium, the premier bourse sent the clarification on the sticking points to the securities regulator.

Finally, the BSEC's appraisal committee submitted its report to the commission on the consortium's proposal.

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