The Dhaka Stock Exchange (DSE) has approved 10 per cent cash dividends for the last three consecutive years with the bourse’s net income increased by 3.42 per cent year-on-year.
The premier bourse’s net income stood at Tk 1,239 million in fiscal year (FY) 2016-17 after fourth year of demutualisation. The net income was Tk 1,198 million in FY 2015-16.
The approval came at the premier bourse’s 56th annual general meeting (AGM) that was presided over by DSE Chairman Abul Hashem at the DSE Tower in Nikunja on Thursday according to a statement.
The bourse’s audited financial statement and the report of the board of directors were also unanimously approved by the shareholders at the AGM.
As the bourse’s net income increased slightly, its earnings per share (EPS) also rose to Tk 0.69 last fiscal year from Tk 0.66 a year ago.
The newly elected shareholder-director was also included in the board of directors at the AGM.
The new director, who was elected on March 20, is -- Minhaz Mannan Emon, managing director of BLI Securities. Mr. Mannan replaced Md Shakil Rizvi, managing director of Shakil Rizvi Stock Limited, who retired from the DSE board in line with the demutualisation scheme.
Newly elected shareholder director Minhaz Mannan Emon, Mohammed Nasir Uddin Chowdhury, managing director of LankaBangla Securities and president of Bangladesh Merchant Bankers Association, Md. Zahirul Islam, vice president of DSE Brokers’ Association of Bangladesh, Ms. Khugesta Nur-E-Naharin, managing director of Modern Securities and DSE Managing Director KAM Majedur Rahman also spoke.
The DSE has become a profit-oriented company owned by shareholders after demutualisation in 2013.
The demutualisation scheme was approved by Bangladesh Securities and Exchange Commission in 2013, and the law on the issue was passed in 2012, to bring transparency to the stockmarket.
Demutualisation is a way to separate the bourses’ management from ownership. Prior to demutualisation, Bangladesh's stock exchanges were non-profit cooperatives, owned by the exchange members, who were usually stockbrokers.