Bourses will now start work on demutualisation
Bangladesh Securities and Exchange Commission yesterday sent the approved demutualisation schemes to the bourses who will now take the next course of action, a spokesman of the regulator said.
The regulator approved the demutualisation schemes last week after the Dhaka and Chittagong stock exchanges had submitted those on July 29.
Demutualisation, a way of separating the bourses' management from ownership, is expected to bring transparency and accountability to the market.
It will transform the two bourses from their current non-profit and cooperative state into profit-oriented entities.
The schemes will now be made public in the next seven days through the bourses' websites and newspaper advertisements.
The stock exchanges, over the next 30 days, will adopt the approved schemes by modifying their respective memorandum and articles of association at a general meeting.
At the general meeting, the bourses will also reshuffle their existing boards to match the board size in the approved schemes.
During the 30-day time, electronic shares will be allotted to the stock exchange members, while 60 percent of the shares will be transferred to a block account to be kept for trading right entitlement certificate (TREC) holders, strategic investors and individuals.
Primary shareholders, who will have a 40 percent stake, will also get their TREC within this period.
The newly-formed boards will hold their first meetings within 90 days from the date of demutualisation.