DBA suggests listing CDBL for ‘greater transparency’

The DSE Brokers Association of Bangladesh (DBA) has suggested listing the Central Depository Bangladesh Limited (CDBL) for greater transparency, accountability and public participation.

It has written a letter in this regard to Dr. Anisuzzaman Chowdhury, chairman of the capital market development committee and special assistant to the Chief Adviser, requesting for necessary measures.

Copies of the letter were also sent on Monday to the chief of the Bangladesh Securities and Exchange Commission (BSEC) and the head of the Dhaka Stock Exchange (DSE).

The CDBL was established in August 2000, with technical assistance from the Asian Development Bank (ADB) and financial contributions from nationalised commercial banks (NCBs), private commercial banks (PCBs), foreign banks, merchant banks, publicly-listed companies, insurance firms, and both the stock exchanges. Hence, these entities are the sponsor shareholders of the CDBL.

The core objectives behind the formation of the CDBL were to modernise and streamline Bangladesh's equity market by transitioning from paper-based to electronic system, improve trading efficiency, reduce risk, and to increase investor confidence.

Even after 25 years of operation, CDBL remains unlisted, which, says the DBA in the letter, is a deviation from its founding vision. Despite a substantial income from issuers, stockbrokers, dealers, custodians, and investors, it is yet to offer public ownership, reads the letter.

In this context, the DBA says it believes the listing of CDBL would foster greater transparency, accountability, and participation in the capital market. Therefore, they have sought the intervention and guidance of Dr. Anisuzzaman, BSEC, and DSE to ensure prompt listing of CDBL in alignment with its original mandate.

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