Bangladesh Securities and Exchange Commission (BSEC) has not accepted the offer of Shanghai Stock Exchange and the Shenzhen Consortium as two strategic investors of Dhaka Stock Exchange (DSE).
On Monday, the 635th emergency meeting of the commission on the strategic investor took the decision, BSEC, the regulatory body of the capital market. Executive director and spokesman of the company said. This information was given in a press release signed by Saifur Rahman.The decision was made in light of the committee formed by BSEC, the commission said. The proposal of the Chinese Consortium has been stated to be contrary to the interest of the capital market. However, rejecting the proposal sent by DSE, the regulatory body has given the opportunity to comply with some conditions and submit a revised proposal.
Conditions include: No conditions can be placed in the Share Purchase Agreement (SPA), which is contrary to local law. Besides, the common shareholders of DSE and the Bangladesh Capital Markets do not go against the development. There should not be any proposal that needs to be modified to correct the existing memorandum and articles of association of DSE. DSE shareholders will have to get approval before finalizing the strategic issue with SPA before submission to the Commission. The committee report on the strategic investor issue will be presented in the general meeting of the DSE. The final application will be made in the Commission with the DSE's general meeting decision, other documents of the consortium with SPA.
