Dhaka Stock Exchange (DSE) is going to launch the newly introduced DSE-SME platform on September 30 with share trading of six companies.
The inaugural ceremony of the new platform for small and medium enterprises will be held at the DSE Tower at Nikunja at 11:30 am, according to a DSE statement.
Bangladesh Securities and Exchange Commission (BSEC) Chairman Prof. Shibli Rubayat-Ul-Islam will be present at the event as the chief guest.
Of the six companies, two are newly listed firms that raised funds through qualified investor offer (QIO) while four others came from the recently abolished over-the-counter (OTC) market.
The two new companies -- Master Feed Agrotec and Oryza Agro Industries -- raised funds worth Tk 100 million each recently.
Four firms that came from the OTC market are Bengal Biscuits, Apex Weaving and Finishing Mills, Wonderland Toys, and Himadri Ltd.
“Initially, these six companies' shares will be traded on the DSE-SME platform and the number of companies will gradually rise as many SMEs are in the queue to raise funds through QIO,” said a DSE official.
The government is working towards giving a boost to the SME sector, which has a huge impact on Bangladesh's economy, he added.
Investors having a minimum of Tk 5.0 million of investment in the stock market are allowed to trade shares of companies on the SME platforms of the bourses.
According to a BSEC notification issued on September 16, any investors registered with the electronic subscription system of the stock exchanges must be considered as qualified for trading on the secondary market of SME maintaining a minimum investment of Tk 5.0 million in the listed securities at the market value as per portfolio statement.
The sponsors, directors and promoters of the listed companies must be considered qualified investors for the purpose of trading on the secondary market, SME platform, the notification said.
On September 16, the stock market regulator abolished the OTC market and allowed 23 OTC companies to move to the SME platform and 18 other firms to the alternative trading board (ATB) of the country's stock exchanges.
The commission asked both the stock exchanges to offer trading facilities of the securities listed on the SME platform and the ATB within a month.
Twenty-nine other OTC companies would be delisted from the stock market.
Of the 23 OTC companies allowed to move to the SME platform, seven companies, including Apex Weaving, Bengal Biscuits, Himadri and Wonderland Toys, are in operation while the rest 16 companies are not in operation.
Trading at the CSE-SME Platform started on June 10 this year. Nialco Alloys, which raised Tk 75 million through qualified investors offer, was the country's first SME to be listed on the stock market.