CDBL to talk to 12 cos on CDS preparedness

The Central Depository Bangladesh Ltd (CDBL) will soon talk to 12 companies selected for scripless trading about their preparedness to join the central depository system.

The Securities and Exchange Commission (SEC) asked the CDBL, the service provider of central depository system (CDS), to give training to the officials of those companies for the electronic trading settlement system.

At a meeting yesterday, the capital market watchdog asked the CDBL to sign agreements with those companies and report to the SEC.

After the CDBL report on preparation status of the companies, SEC will declare certain companies eligible for the CDS. The companies will get three weeks time to start scripless trading.

Prior to joining CDS, trading of shares of those companies will remain suspended for three days and spot trading will be held for another three days for smooth dematerialising of paper share certificates.

Earlier on February 15, the SEC selected 12 companies for scrip-less trading.

These companies are Arab Bangladesh Bank Ltd, Agricultural Marketing Company Ltd (Pran), Apex Tannery Ltd, Bata Shoe Ltd, Bangladesh Oxygen Company Ltd, Dutch Bangla Bank Ltd, Green Delta Insurance, Lafarge Surma Cement, Mutual Trust Bank Ltd, IDLC Ltd, ACI Ltd and Singer Bangladesh.

At the meeting yesterday, Dhaka Stock Exchange officials demanded the mandatory opening of beneficiary owners' (BO) account be withdrawn. Earlier, the SEC made it compulsory for IPO applicants to open BO account before subscription.

The current system will discourage primary investors to take part in IPO, DSE CEO Salahuddin Ahmed Khan said. "The BO account should be mandatory once an IPO applicant gets allotment of share after lottery," he said.

Under the present system, the investor will lose the account opening fee of Tk 300-500 if he/she is unlucky in lottery, he said.

The scripless trading started in bourses on January 24 with shares of Square Pharmaceuticals.