What's Happening?
The Dhaka Stock Exchange (DSE) has yet to progress on its mandatory self-listing, a requirement under the demutualization scheme implemented in 2013. This scheme aimed to separate management and ownership for better market regulation. Despite the passing of over a decade, the DSE has not divested its shares to general and institutional investors. The Chittagong Stock Exchange (CSE) has submitted a proposal for listing, but the DSE remains silent on the issue. The Bangladesh Securities and Exchange Commission (BSEC) had previously asked the DSE to plan for listing, but no significant action has been taken.
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Why It's Important?
The self-listing of the DSE is crucial for enhancing transparency and accountability in the equity market. It would allow for better regulation and potentially attract more investors. The delay in listing raises concerns about the effectiveness of the demutualization scheme and the governance of the DSE. The equity market has shown signs of recovery, and listing the DSE could capitalize on this momentum. However, the current bearish outlook and declining transaction fees pose challenges to achieving a favorable listing price.
What's Next?
The DSE is expected to continue discussions with the BSEC regarding guidelines for self-listing. The market recovery may provide an opportunity for the DSE to proceed with listing, but concerns about operating income and transaction fees need to be addressed. Stakeholders, including the DSE Brokers Association, are urging the government to take measures for listing other entities like the Central Depository Bangladesh Ltd. The DSE's listing remains a critical step for the future of Bangladesh's equity market.
