China partner was a good choice for DSE
At last, the Bangladesh Securities and Exchange Commission has acknowledged that the selection of a Chinese consortium over an Indian one as a strategic partner of the Dhaka Stock Exchange was a good choice.
The Dhaka bourse signed the agreement with the consortium, comprising the Shenzhen Stock Exchange and the Shanghai Stock Exchange, on May 14 last year.
Disagreement had prevailed between the premier bourse and the stock market regulator before the inking of the agreement as the BSEC was in favour of the Indian consortium.
“We are lucky to have the Chinese consortium because it has experience about SME-based development,” said Khairul Hossain, chairman of the BSEC.
His comment came at a DSE event on “Promoting DSE SME and V-Next Platforms” at the InterContinental Dhaka on Monday. The two platforms have been launched recently to enable financing for small and medium entrepreneurs, while V-Next focusing on mobilising funds from abroad. Hossain said to have been in doubt up until very recently when the platforms were set up with the consortium’s help.
The two platforms will help deepen the market’s depth and increase market capitalisation in line with the gross domestic product, he said, adding, “These will help boost the SME sector of the country.”
The BSEC chairman said the platforms would not only bring foreign investment but also incorporate a global standard of corporate culture among enterprises.
Related entities like chartered and cost management accountants and chartered secretaries will also gain skills in dealing with foreigners that will help the stock market, he said.
“The DSE should be cautious about the platforms so that no rumour or craze spoils them,” added Hossain.
Abdul Matin Patwary, acting managing director of the DSE, said the bourse was working to build a suitable ecosystem for the DSE SME platform. He hoped to see trading on it within next year, informing that they were already in talks with 20 companies to bring them on board.
Minhaz Mannan Emon, one of the DSE directors, said the Chinese consortium’s advantages would be materialised gradually and its technological support will help the market in the long run.
DSE Chairman Abul Hashem presided over the event where Feisal Hussain, team leader of the Business Finance for the Poor in Bangladesh, and Waqar Ahmad Choudhury, senior vice president of the Dhaka Chamber of Commerce and Industry, also spoke.
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