The Bangladesh Securities and Exchange Commission on Wednesday extended by five working days the deadline for submitting the report of its committee formed to evaluate the Dhaka Stock Exchange’s proposal on selling its shares to a strategic partner.
After receiving the proposal from the DSE that favoured a Chinese consortium, the BSEC formed the four-member committee on February 19 to analyse the DSE proposal and asked the committee to submit its report to the commission by Wednesday.
The committee, after analysing the proposal, found some rules violations and asked the bourse to clarify those by March 4.
The DSE on Sunday sent its replies to the queries made by the commission and it mentioned the group’s willingness to amend a number of clauses the BSEC highlighted in its letter to the DSE.
BSEC officials said that the commission on Wednesday extended time for the evaluation committee by five working days as it could not complete its task by 10 working days and sought additional time.
The DSE said that the consortium had agreed to sign share purchase agreement under the law of Bangladesh instead of UK law and it also excluded the condition of waiving from the settlement guaranteed fund of the bourse.
The Chinese embassy recently sought finance minister AMA Muhith’s cooperation for the consortium.
Another group, led by India’s National Stock Exchange, on the other hand, has kept lobbying the government high ups and the commission despite losing the bid, sources said.
The group also includes NASDAQ of USA and Frontier Bangladesh but NASDAQ would not buy a single share of the DSE, they said.
On Wednesday, US embassy economic officer Eduardo Garcia met the BSEC top brass and discussed developments in the Bangladesh’s financial sector and the potentials for US investment.
US embassy deputy counsellor for political and economic affairs Ellen Wong and commercial specialist Sirat Mahadi were also said to be present at the meeting.
Commission sources could not confirm whether the DSE’s share sales issue came up at the meeting.
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