DSE seeks BSEC’s approval to resume trading

The Dhaka Stock Exchange (DSE) sought the securities regulator's permission on May 3 to resume trading from May 10 and get relief from some regulations.

The DSE sent a letter to the Bangladesh Securities and Exchange Commission's (BSEC) Chairman Professor M Khairul Hossain seeking its approval to resume trading amid the ongoing general holidays.

The DSE board of directors in an online meeting on April 30 agreed in principle to resume trading on the bourse.

Minhaz Mannan Emon, one of the directors of the premier bourse, told The Business Standard: "Our board already took the decision of resuming trading and asked the management to seek regulatory permission in this regard."

"Our board took the decision of resuming trading from May 10 even if the ongoing holiday is extended. However, trading on the bourse will resume following approval of the BSEC."

Meanwhile, Md Ghulam Faruque, who is in charge of the Chittagong Stock Exchange's (CSE) Dhaka office, told The Business Standard that the CSE already completed all the preparations for resuming trading.

"Recently a meeting of the board of directors was held. It has been decided there that if the DSE resumes trading, the CSE will do so at the same time."

According to DSE sources, the stock exchange sought exemptions from some policies and regulations while resuming trading. The DSE also asked for including the stock market in the list of essential services amid the ongoing lockdown.

However, even if trading resumes from May 10, it will not be possible for the DSE to transfer the shares of entrepreneurs or managers, ensure monitoring and compliance of initial public offerings (IPOs) and brokerage houses renew licenses now. So the stock exchange has sought relief from these issues.

Meanwhile, the DSE has also informed the securities regulator that it will not be possible for it to continue trading in the stock market for more than two hours due to the lack of banking transactions.

In this case, the DSE will seek the support of the banks for cheque clearing.

During normal times, the stock exchange keeps the BSEC informed about different aspects of the listed companies through written documents. This will be done through email now.

Trading on both the bourses remained closed from March 26 following general holidays announced by the government to contain the spread of Covid-19.

Later, the closure of trading was extended till May 5 following the extension of the holidays.

Md Saifur Rahman, a BSEC executive director and spokesman, told the media: "We are yet to receive any letter from the stock exchanges. The BSEC will consider the proposal after justifying it."

This year, the stock market indices were already going through extreme volatility because of a slowdown in exports, concerns over the health of the banking sector, and a turbulent money market.

The novel coronavirus outbreak added to all existing worries in the stock market and triggered a free fall in the last trading period.

The DSEX, the benchmark index of the Dhaka bourse, suffered a 20 percent fall until March 18, but later recovered partially with a 10 percent gain due to the new floor prices.

Before the nationwide shutdown was imposed, the DSEX stood at 4,008 points on March 25.