Bangladesh Bank OKs Dhaka Stock Exchange's proposal to receive money from Chinese partner

Source: Xinhua| 2018-08-29 16:44:37|Editor: Yamei
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DHAKA, Aug. 29 (Xinhua) -- The central bank of Bangladesh has approved the Dhaka Stock Exchange's proposal to receive about 10 billion taka from a Chinese consortium that bought its shares, an official said Tuesday.

The Bangladesh Bank (BB) official said Dhaka Stock Exchange (DSE) has recently sought BB permission as the consortium managed to get permission from China's National Development and Reform Commission, the State Administration of Foreign Exchange and the China Securities Regulatory Commission to remit money in line with the share purchasing agreement.

"BB approves DSE proposal to receive 9.47 billion taka against 45,09,44,125 ordinary shares of the DSE at 21 taka each, " said the BB official who did not like to be named.

He said DSE could now get money with the local City Bank Limited by completing some internal formalities like including opening of a beneficiary owners' account with Central Depository Bangladesh Limited in favor of the consortium, transferring the DSE shares to the Registrar of Joint Stock Companies and Firms in favor of the consortium and receiving fund from the consortium

It would take about a week for DSE to complete such formalities jointly with the consortium's Chinese representatives.

The DSE shareholders, however, reportedly want the government to exempt the 15 percent gain tax levied on share sales.

The Chinese consortium comprising the Shenzhen Stock Exchange (SZSE) and the Shanghai Stock Exchange (SSE) in May signed an agreement with Bangladesh's Dhaka Stock Exchange (DSE) to acquire 25 percent stake in the country's premier bourse and became its strategic investor after Bangladesh Securities and Exchange Commission (BSEC) approved DSE's proposal in this connection.

The BSEC approved the DSE's strategic partnership, fixing each of 450,944,125 shares at a price of 21 taka (0.25 U.S. dollars), the regulator said on its website.

DSE's hunt for a strategic partner came as it turned into a demutualized stock exchange on Nov. 21, 2013.

SZSE and SSE received DSE's tender invitation in July 2017.

A DSE official told Xinhua earlier that in consideration of all the aspects, the proposal of the Chinese consortium was the best offer in terms of value and technical support.

The bidding process also involved Indian, U.S. and Turkish exchanges.

According to a statement released by the Shenzhen bourse, the Chinese consortium's bid to become strategic partner of DSE would support the development of China's Belt and Road Initiative and cooperation along the Bangladesh-China-India-Myanmar Economic Corridor.

It said the Chinese bourses would cooperate with DSE on trading technology, market and product development. (1 U.S. dollar equals to about 84 taka)