DSE allowed direct access to firms’ credit info for verification

The Dhaka Stock Exchange (DSE) can now verify the credit information of company sponsors and directors directly from the Credit Information Bureau (CIB) for listing companies in the Alternative Trading Board (ATB).

The Bangladesh Bank has recently sent a letter to the authorities concerned, allowing the country's premier bourse to use the CIB database directly for the ATB listing.

Previously, the DSE used to verify information about defaulters in the CIB through the Bangladesh Securities and Exchange Commission (BSEC), which took a lot of time.

The DSE sent a letter to the Bangladesh Bank in November to get access to the CIB database for verifying the loan status of individuals and institutions, said sources at the central bank.

In the letter, the DSE said it is necessary to ensure that the interested companies, sponsors or directors are not defaulters of any bank loan before listing them in the ATB. Therefore, the DSE sought the governor's approval to get access to the online CIB services as soon as possible. At the same time, the DSE will ensure that the information will be used only for listing purposes and its confidentiality will be maintained strictly.

A senior DSE official said getting access to the CIB will reduce time and complexity of the process.

The BSEC approved the ATB rules at the end of 2019. Recently, the DSE allowed LankaBangla Securities to be traded at the ATB.

Besides, there are a number of bonds and companies in the pipeline for being listed on the platform.

The ATB will be launched by the beginning of 2023, the DSE sources said.