Written on 4:43 PM by CommuniKation
: DSE – Dhaka : Bangladesh
– Dhaka Stock Exchange (DSE), Bangladesh - Self-assessment
– Information on the nature and operation of the listing regime
1. PRINCIPLES OF LISTING REGULATION
1. Give an overall indication of the main characteristics of your listing regime.
Listing regime is governed by Listing Regulations of Dhaka Stock Exchange Ltd.
The main characteristics of listing regime are as follows:
- No dealings in securities of a company shall be allowed on the exchange
either on the ready quotation board or cleared list, unless the company or the
securities have been listed and permission for such dealing has been granted in
accordance with these regulations. [Reg. 3(1) of section II].
- The permission under sub-regulation (1) may be granted upon an application
being made by the company or in respect of the securities in the manner prescribed at
least ten days prior to issue of the first prospectus. The Exchange, in granting such
permission will consider, among other things, sufficiency of public interest in the
company or the securities as determined by the Council in a well-defined way.
- The Exchange shall decide the question of granting permission within a
maximum period of six weeks from the date of closure of subscription lists. In case the
permission is refused, the reasons thereof will be communicated to the applicant and
Commission within six weeks from the date of closure of subscription lists.
- The Council will be the sole authority to grant, defer or refuse such
permission and may for that purpose, relax any of these regulations subject only to two-
third majority of the Councillors present at such meeting of the Council and so resolving
by the majority of them.
2. HISTORICAL DEVELOPMENT, QUALITY OF MARKETS AND LISTING
STANDARDS
1. Briefly describe the history and development of stock markets and listing of
companies on your exchange.
- Dhaka Stock Exchange is situated at the commercial heart of Dhaka, the capital city of
Bangladesh. It was incorporated on April 28, 1954. Formal trading began in 1956.
Previously trading was conducted on the floor through an open outcry system. From 10th
August 1998 automated screen based trading has been introduced paving the way for
trading through LAN and WAN.
-
- The following steps have been taken for the development of Dhaka Stock Exchange :
- Articles amended to ensure transparency and accountability.
- Management separated from decision-making body.
- Number of Councillors increased from 12 to 24 with equal representation from non-
members.
- On-line trading introduced from 10th August 1998.
- Central depository system is being introduced.
- A panel of retired district judges formed to settle disputed between members and their
clients.
- Investors’ Protection Fund has been formed.
- To create awareness educational programme is going on.
- Minimum capital requirement fixed at Tk.2.5 million.
- Margin Rules, 1999 has been introduced to extend credit facilities.
- Listing regulations of exchange have been amended.
- Segregation of customers assets and liabilities made mandatory.
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- Trading of allotment letters has been discontinued.
2. Is your exchange the only official (regulated) securities exchange in your country?
- No, there is another stock exchange named as Chittagong Stock Exchange Ltd. in
our country.
3. If there are also other regulated exchanges, what is their relationship with your
exchange e.g. do the exchanges compete for listings, and if so what form does the
competition take e.g. lower fees, differential regulations etc? Is there cross-listing /
trading between the exchanges?
4.
- Yes, in most of the cases, there is cross-listing.
5. Provide statistical information on the profile of your market, including:
ß the dimensions of the listed market e.g. number of companies, market
capitalisation, breakdown between domestic and foreign companies (if
applicable), sizes of company, industry type etc.
ß the investor profile e.g. domestic and international institutional investors, retail
investors etc.
ß listing of domestic companies overseas (equity and depository receipt form)
ß market performance and liquidity.
Year Number
of No. of Growth Issued
securities Shares % Capital
in million Tk. in mn
1994 170 241.50 23.81 11,673.80
1995 201 341.78 41.52 19,438.05
1996 205 397.43 16.28 23,052.41
1997 222 500.99 26.06 28,454.51
1998 228 504.16 0.63 28,625.71
1999 232 560.21 11.12 28,774.57
2000 241 713.19 27.31 31,191.86
2001 249 850.64 19.27 33,254.00
2002 260 1,026.72 20.70 35,203.17
2003 (upto
July) 262 1,065.19 3.75 36,607.43
-
-
-
- No. of securities - 262
- No. of companies - 243
- No. of mutual fund - 10
- No. of debenture - 9
-
- Market capitalisation of all listed securities as on 31-07-2003
- Total no. of domestic companies – US $1224m
- Total no. of foreign companies – 237
- Sizes of companies – 6
-
- All listed securities are classified under thirteen sectors. These are as follows :
- Banks
- Investments
- Engineering
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- Fuel & Allied Products
- Fuel & Power
- Jute
- Textile
- Pharmaceuticals
- Paper & Printing
- Services & Real Estate
- Cement
- Miscellaneous
- Insurance
-
- Most of the investors are local retail investors. There are a few local institutional
investors in our market. At the moment, the market is experienced with the lack of
international institutional investors.
-
- So far there is no incidence of being listed of a domestic company overseas.
Market performance &
Liquidity
Particulars 2003 2002 2001 2000 1999
up to July
No. of Securities 262 260 249 241 232
Market Capitalisation of all listed securities
-Tk. Million 72,998.00 71,262.00 63,679.0`0 62,923.60 44,781.15
Total Turnover Value Tk. In million 10,367.88 34,984.32 39,869.29 40,273.20 38,964.71
Daily Average Turnover in mn 71.50 121.90 149.32 145.72 151.61
Total Turnover Vol In million 392.80 1,309.14 1,107.20 949.04 791.081
Daily Average vol in mn 2.30 4.56 4.13 3.43 3.078
Index ***
General Index 830.46 848.41 817.79 642.68 487.77
Weighted Avg. Index 823.14 819.74
*** 24th November 2001 DSE introduced a new Index named Weighted Avg. Index
According to SEC Directive on 27th November introduced DSE General Index
3. LEGISLATIVE AND REGULATORY FRAMEWORK FOR LISTING
1. Describe the legislative and regulatory context for regulation of public companies and
exchange listing in your jurisdiction/ exchange. For example, is regulation provided for
by company law, securities law and regulations, exchange listing rules, or a
combination of these?
- The Companies Act, 1994
- The Securities and Exchange Ordinance,1969
- The Securities and Exchange Commission Public Issue Rules,1998
- Right Issue Rules 1998
- The Listing Regulations of the Dhaka Stock Exchange Limited
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2. Summarise the main regulatory provisions relating to corporate and listing regulation.
- The main provisions that includes in the above-mentioned regulations are as follows:
- “The Companies Act, 1994” – Details of the regulations required for all public companies
and also the companies intends to issue prospectus.
-
- “The Securities and Exchange Ordinance, 1969” - Regulation on the details for the
registration, functioning and compliance by the Exchange, Cancellation and suspension
of registration of the Exchange, Listing of Securities and suspension and de-listing of
securities.
- “The Securities and Exchange Commission Public Issue Rules, 1998” Regulation for
public companies who intends to issue initial public offerings
-
- “Right Issue Rules 1998” - Regulations for public listed companies intends to issue right
shares
- “The Listing Regulations of the DSE.
4.INSTITUTIONAL RESPONSIBILITIES FOR CORPORATE AND LISTING
REGULATION
1. Outline the responsibilities and roles in listing regulation of government departments,
securities regulatory bodies (e.g., SEC) and/or the stock exchanges respectively.
- The Securities and Exchange Commission is regulatory body of the capital market of
Bangladesh and its role is outlined in the Securities and Exchange Ordinance, 1969.
-
- Stock exchanges have the responsibility to regulate and monitor the listed company in
line with listing regulations.
2. Provide details of how regulatory responsibilities are discharged by the Exchange and
how they are regulated by government or securities commission e.g. requirements for
licensing and supervision of the Exchange.
- The Exchange discharge its regulatory responsibilities in line with the Listing
Regulations of the exchange, Securities and Exchange Ordinance,1969 and in the light
of other applicable securities laws.
-
- DSE is regulated by the SEC for its licensing and supervision of the
Exchange as per Securities and Exchange Commission (Stock broker/dealer/ authorised
representative) Regulations, 2000 and supervision is regulated as per prevailing law of
the land and other applicable securities laws.
3. Describe the arrangements for the delegations from the Exchange’s Board (or
governing body) for the discharge of its regulatory functions e.g. to a Listing
Committee, or through delegation to executive staff, or a mixture of both?
- Both the Chief Executive Officer and the Listing Committee are delegated from
the Exchange’s Board for the discharge of its regulatory functions.
4. What is the ownership and governance model of your exchange, and how does this
impact the Exchange’s discharge of its regulatory functions?
- Management of the exchange is divided into two parts: a policy-making body i.e.
Council, headed by a Chairman, consisting of 24 Councillors, 12 of whom are elected
directly among the members of the exchange and rest of the 12 are selected from
different apex body of business organisation/ministry of the country.
-
- Day to day affairs is run by Chief Executive Officer of the Exchange with the assistance
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of a skilled management team.
5. Are there any plans to alter the ownership and governance structure e.g. by de-
mutualising or broadening ownership of the Exchange?
- No such decision has been taken so far by the Council.
5.LISTING RULES
Summarise briefly the main areas of coverage of your exchange’s listing rules (please note
later questions will require further detail on specific aspects).
Main areas of coverage of exchange’s listing rules are as follows.
- The listing regime also includes the following :
- about listing of companies and securities,
- matter relating to prospectus, allotment, issue and transfer of shares,
- dividends and entitlements,
- Annual General Meetings, etc.
- Increase of capital and allied issues,
- Listing of subsidiary company and other matter,
- De-listing and suspension,
- Listing and annual fees,
- Continuing Listing Requirements
- Corporate disclosure policy,
- Explanation of exchange disclosure policies.
6. USE OF ADVISERS IN THE LISTING PROCESS AND DUE DILIGENCE
PROCEDURES
1. Describe the roles of the following financial and professional advisers in the listing
process:
- All public issue must be managed by at least one Merchant Banker. A Merchant
Banker make arrangements regarding selling, buying, underwriting or subscribing to
securities as underwriter, manager, consultant, advisor or rendering corporate advisory
service in relation to issue management.
-
- A Financial Statement and a Report by an Auditor is required in the prospectus as well
as in the listing process with the Exchange.
2. Does your exchange/ securities regulator require the appointment of sponsors (i.e.
specialist the financial intermediaries such as investment bankers, that advise the
issuers or underwrite the issues coming to the market) for initial listing and/ or
ongoing listing?
- A merchant banker functions as the Manager to the issuer, to assist the company during
the initial listing or ongoing listing.
3. If sponsors are required, what are their regulatory status, responsibilities and
functions?
- A Merchant Banker is required to be registered with SEC to do the underwriting, and
issue Management activities. In order to facilitate public offering merchant banks plays a
vital role by doing the followings responsibilities and functions:
-
- The Manager to the Issue is responsible for verification of the contents of prospectus
and the reasonableness of the views expressed thereon. The Manager to the Issue
ensures that the modification and suggestion, if any, made by SEC are incorporated in
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the prospectus.The Manager to the Issue shall furnish to the SEC all information and
documents required to comply with the entire regulatory requirement for the issue.
4. Describe the due diligence practices carried out for IPO’s, and how they have
developed.
- As per IPO Rules, 1998, there needs some due diligence certificate from
the Issue manager, underwriters, sponsors/directors etc.
-
7.REQUIREMENTS FOR ELIGIBILITY/SUITABILITY FOR LISTING, MARKET
SEGMENTS AND DIFFERENTIAL REGULATION OF MARKETS AND PRODUCT
TYPES
1. Summarise the main qualitative and quantitative eligibility criteria for initial listing
contained in your listing rules.
- Main qualitative and quantitative eligibility criteria for initial
listing contained in our listing rules as follows:
-
- No company will apply for listing or be listed unless it is registered under
the Act as a public limited company or has been set up under a statute and
its minimum paid up capital is Taka ten million.
- Despite receiving the application for listing and any preliminary actions
thereon, no company shall be listed unless it has made a public issue
which is subscribed by not less than 250 applicants.
- Minimum public float is determined by Securities and Exchange
Commission.
2. Are there explicit de-listing/ cancellation of listing criteria, and, if so, what are the
procedures for de-listing?
- Procedure of delisting is already mentioned in the Chapter IX under delisting and
suspension chapter.
3. Is differential regulation applied to market segments or product types e.g. is there a
second market (also sometime called second board or development companies
market) or other types of securities listed (e.g. debt securities)?
- Not applicable.
4. If so, please supply details of the regulatory standards and listing procedures applied
to each separate market and product type.
- Not applicable.
5. Are differential regulatory requirement applied to any specialist types of issuers (e.g.
property or technology companies)?
- Not applicable.
6. What are the factors effecting the willingness and ability of public companies to apply
for listing on your exchange (e.g. costs, concerns of founders on diluting control,
requirements of listing rules etc.)?
[Not provided]
7. Provide detailed information on the cost of initial listing and maintaining a listing on
your exchange, and compare this with the costs of raising funds form alternative
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sources of business funding in your economy. If detailed information is not readily
available please provide anecdotal information on the costs, broken down to indicate
the relative costs of advisory/ underwriting fees, accountant’s fees, listing fees payable
to the Exchange, other regulatory fees etc.?
[Not provided]
8.SOURCES OF INFORMATION AT INITIAL PUBLIC OFFERING/ LISTING, IPO
DOCUMENT APPROVAL AND LISTING APPLICATION PROCEDURES
1. Prospectus and registration requirements:
- Summarise the requirements from company law, securities law or other regulations and
rules for the publication of a prospectus or listing document.
- Prospectus and registration requirements are contained in the Companies Act, 1994 and
contents of prospectus should be in compliance of IPO Rules, 1998 also.
2. Further issues:
- Do further issues of securities require the publication of further information, and if so
what are the specific requirements?
- In case of rights offering, consent from SEC is required.
3. Prescribed information disclosure:
What information is required to be disclosed in a prospectus or listing document? Please
summarise the main areas of information required. Examples of areas are information on:
- the persons responsible for the prospectus, auditors and other advisers
- the shares to be listed
- the company and its capital
- the company’s activities
- the issuer’s assets and liabilities, financial position and profits and losses for the track
record period
- the issuer’s management, and
- recent developments and prospects of the company.
- Prescribed information disclosure:
- Condition under 2CC of SEC Ordinance, 1969,
- Declaration about the responsibility of the directors and officers of the company in
respect of the prospectus,
- Due diligence certificate by the Issue Manager,
- Due diligence certificate by the underwriters,
- Risk factors,
- Use of proceeds,
- Description of property,
- Plan of operation,
- Plan of distribution,
- Ownership of the company’s securities,
- Description of securities outstanding or being offered,
- Financial structure,
- Financial statement and auditor’s report,
- Classified information,
- Application form, etc.
4. Financial information:
In particular what financial information is required to be published by an IPO company/ initial
listing applicant? What accounting standards are required to be adhered to by reporting
accountants/ auditors? Is there an explicit working capital requirement at the IPO/ initial listing
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stage?
- Five years comparative financial statements required to be published as per
IPO Rules, 1998 by an IPO company, International Accounting Standards required to be
adhered by the auditors.
5. Forward-looking information:
Is the inclusion of forward-looking information in offering documents permitted? If so, how is
this presented e.g. are there requirements for a forecast to be reported upon.
- No..
6. Pro forma financial information:
Is the use of pro forma financial information permitted in offering documents?
- Yes. [TO BE CONFIRMED]
7. IPO/ initial listing approval:
What methods of assessment are used by the exchange and regulatory authority for the
approval of IPO’s and initial listings e.g. do the authorities pre-vet documentation, or is filing
sufficient?
- Stock Exchange follows the listing regulation in case of giving initial listing. On the other
hand, SEC follows the IPO Rules, 1998 in case of giving consent to Prospectus.
8. Regulation of the marketing of securities:
What approach is taken to the regulation of marketing securities? For example are research
analysts reports used for this purpose? Are “roadshows” used to encourage investor interest
in an IPO?
- As per SEC’s consent letter, every IPO must be listed at least with one stock exchange
for trading of its shares.
-
9.CONTINUING OBLIGATIONS OF LISTING – DISCLOSURE REQUIREMENTS
1. Provide a summary of the main types of continuing disclosure requirements under the
following categories:
Disclosure of “price sensitive” information
- A listed Company shall supply the Exchange with immediate effect. Any information
concerning the Company or any of its subsidiaries necessary to avoid the establishment
of a false marked in the Company’s securities or which would be likely to materially
affect the price of its securities.
Disclosure of periodic financial information and the accounting standards this is
required to be prepared to
- Any acquisition or disposal which are in the nature of trade investments and which in the
opinion of the Directors is material, the fact of such disposal acquisition and the possible
for estimated effects of such disposal and acquisition on the performance and the
profitability of the Company shall be communicated to the Exchange and to the
shareholders at the same time.
Specific prescribed disclosures of material information and actions on certain
transactions e.g. acquisitions, disposals and related transactions
- Any proposed change in the general character or nature of business of the Company or
of any subsidiary thereof and particulars of any offer or proposals for the purchase or
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sale of any controlling interest or any substantial part of the assets of the Company or of
any subsidiary thereof and of the decisions of the Council in that regard.
Disclosure of director’s and major shareholder’s dealings, and
- Any intention to fix a book closing date and the reason thereof, stating the book closure
date, which shall be at least 14 (fourteen) market days after the date of notification to the
Exchange, and the address of share registry at which documents will be accepted for
registration. Provided however that the Exchange may direct at any time in writing to
any company for effecting compulsory book closure within and for certain period of time
as may be prescribed in the directive, subject to the time limits prescribed by the
companies Act. 1994. Provided further that the Exchange may also direct any company
at any time in writing to take appropriate measures for ensuring issuance of good
tradable securities of the company.
Other prescribed disclosures and actions such a those set out in Annex 5. [Please us
the categories in Annex 5 as a checklist]
- Any recommendation or decision that a dividend will not be declared.
- Any announcement of a payment of an interim dividend (including bonuses if any), the
rate and amount per share and date of such payment which shall be before the expiry of
60 market days from the date of announcement.
2. What mechanisms are used to ensure wide dissemination of information to the market.
Investors and the public? For example are company announcements published in the
newspapers and/or on dealer- broker trading screens?
- Any recommendation of a final dividend (including bonuses if any), the date and amount
per share and date of payment which shall be before the expiry of 60 market days from
the date of declaration.
- Any decision to change the Capital Structure of the Company by way of rights or a
Bonus Issue.
- Such information should be communicated to the Exchange by telephone no sooner the
meeting is held to consider or recommend such entitlement and confirmed by letter
immediately afterwards.
- In the case of an interim dividend declared before the close of a financial year, such
announcement to the Exchange shall be accompanied by a statement showing
comparative figures, based on which the declaration was made for such period of the
current financial year and the corresponding period of the previous year.
- When a dividend (Interim or Final) is declared after the close of a financial year, such
announcement to the Exchange shall be accompanied by a statement showing
comparative figures of the following;
- Turnover figure/Gross operating profit;
- Gross profit;
- Income from other sources;
- Provision for Taxation;
- Net profit after Taxation.
- The Company shall make available to the Exchange and to all
shareholders in the form set out in a half yearly Financial Statements before the expiry
of 1 month from the half year period, such financial Statements shall be signed by the
Chairman or Chief Executive and the Finance Director or in his absence the Chief
Accountant.
- The Company shall make available to the Exchange Financial Statements before the
expiry of 3 months from the end of each Financial Year even if the figure are provisional
subject and to audit.
- Any intention to pass a resolution at any members meeting shall be notified to the
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Exchange at the same time that it is conveyed to the shareholders and within 3 market
days after the date of the meeting whether or not such resolution was carried.
- Companies shall send duly stamped proxy forms to shareholders and debenture holders
in all cases where proposals other than those of a purely routine nature are to be
considered at a meeting of the company’s shareholders and debenture holders and
such proxy forms shall be so worded that a shareholder or a debenture holder may be
eligible to vote either for or against each resolution.
- Any change of address of the registered office of the Company or of any offices at which
the register of the securities of the Company is kept.
- Any change in the Directors, Company Secretary, Registers or Auditors of the
Company.
- Any change of substantial share holding in the Company and details thereof.
- Any application filed with a Court to wind up the Company or any of its subsidiaries. The
appointment or receiver of liquidator of the Company or any of its subsidiaries.
- Any acquisition of shares of another company or any transaction resulting in such
Company because a subsidiary of the Company.
- Disclosure of periodic financial information and the accounting standards
- The company shall make available to the exchange and to all shareholders
in the form set out in a half yearly financial statements before the expiry of 1 month from
the half year period, such financial statements shall be signed by the Chairman or CEO
or in his absence the Chief Accountant.
- The company shall make available to the exchange financial statements
before the expiry of a 3 months from the end of each financial year even if the figures
are provisional and subject to audit [Reg.36(9) of section XI)].
- Specific prescribed disclosures of material information and actions on certain transaction
e.g. acquisitions, disposals and related transactions
- A listed company shall immediately notify the exchange and the commission in respect
of any material change in the nature of its business including acquisition or sale or
purchase of major operating assets, franchise, brand name, goodwill, royalty and all
relevant information such as consideration, terms of payment, period of use of such
facilities and projected gains and also risk or uncertain factors to accrue to the company
(Reg.27 of section VIII).
- Disclosure of director’s and major shareholder’s dealings, and –
- Every listed company shall notify the exchange and the commission immediately
regarding changes in its council of directors by addition or removal by death,
resignation, or disqualification, as the case may be (Reg. 25 of section VIII).
- In annual published accounts and report, a director report, in addition to the
requirements of the Companies Act, 1994 shall contain among others the following:
- Names of the persons who were at any time during the financial year, directors of the
company.
- A statement for each director whether or not he had an interest in any other body
corporate within the group, specifying the number and amount of shares and debentures
held at the beginning and end of each financial year.
- Immediate after getting the price sensitive information from the listed companies, stock
exchange disseminate the gist of the information to broker-dealer trading screens. As
per SEC’s directive, every listed company is required to publish the price sensitive
information in two widely circulated news paper, one in English and another in Bengali.
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10.CORPORATE GOVERNANCE PROVISIONS
What role does your listing regime play in the overall regulation of corporate governance in
your country?
Importance on Good corporation governance has been highlighted in several section of the
listing regulations of the exchange.
1. In particular provide a summary of the main types of requirements under the following
categories, cross-referring to other answers where the information has already been
provided:
Disclosure of “price sensitive” information
- See above.
Directors expertise and experience to manage their business
- Highlighted in the listing regulations of the exchange
Enshrinement of certain shareholder rights
Takeovers regulation
- There is a regulation named Securities and Exchange Commission (substantial
acquisition of shares) Regulations, 2002.
Proscription of insider dealing
- Question: Who are insiders?
- Ans. All persons who came in to possession of material inside information, before its
public release are considered insiders for the purpose of the Exchanges disclosure
policies. Such persons include controlling shareholders, directors, officers and
employees and frequently also include outside attorneys, accountants, investment
bankers, public relation advisers, advertising agencies, consultants and other
independent contractors. The husbands, wives, immediate families and those under the
control of insiders may also be regarded as insiders. Where acquisition or other
negotiations are concerned, the above relationships apply to the other parties to the
negotiations as well.
- Question: What is insider information?
- Ans. Insider information is that which has not been publicly released and which is
intended for use solely for a corporate purpose and not for any personal use and which
the company withholds.
- Question: What is insider trading?
- Ans. Insider trading refers not only to the purchase or sale of company securities but
also to the purchase or sale of options with respect to such securities. Such trading is
deemed to be done by an insider whenever he has any beneficial interest, direct or
indirect in such securities or options regardless of whether they are actually held in his
name.
- Included in the concept of insider trading is tipping, or revealing inside information to
outside individuals to enable such individuals to trade in the company securities on the
basis of undisclosed information.
- Question: How soon after the release of material information any insiders begin to
trade?
- Ans. This depends both on how thoroughly and how quickly after its release the
information is published by the news media services and the press. In addition, following
dissemination of the information, insider should refrain form trading until the public has
had an opportunity to evaluate it thoroughly. Where the effect of the information on
investment decisions is readily understandable, as in the case on earnings, the required
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waiting period will be shorter than where the information must be interpreted before its
bearing on investment decisions can be evaluated. While the waiting period is
dependent on the circumstances, the Exchange recommends that, as a basic policy,
when dissemination is made in accordance with Exchange policy insider should wait for
at least twenty four hours after the general publication of the release in news media.
- Question: What steps can companies take to prevent insider trading?
- Ans. Companies can establish, publish and enforce effective procedures applicable to
purchase and sale of its securities by Officers, directors, employees and other insiders
designed not only to prevent improper trading but also to avoid any question of the
propriety of insider purchases or sales. One such procedure might require corporate
insiders to restrict their purchase and sale of the company’s securities with following the
release of the annual of the statements, or other releases setting forth the financial
condition and status of the company. Another could involve the purchase of a
company’s securities on a regular periodic basis by an agent over which neither the
company nor the individual has any control.
- Adoption of corporate governance codes.
- Already adopted in listing regulations
- Adoption of codes regulating of directors dealings, and
- Already mentioned in previous section
- Disclosures and action on certain transactions.
- Not understood.
11.COMPLIANCE MONITORING OF CONTINUING OBLIGATIONS AND
ENFORCEMENT
1. Summarise the compliance monitoring and enforcement mechanisms in your listing
regime?
Listing manager takes appropriate actions as per provisions of listing regulations of the
exchange in case of improper compliance of the listing regulations by the listed companies.
There is fine provisions, penalty provision in case of non-compliance of the listing regulations
by the listed companies.
2. In particular, provide details of the approach taken in the following categories:
monitoring the content and timing of disclosures by issuers of information at initial
listing and on an on-going basis
- We verify the content and timing of disclosures in line with the relevant securities laws
and also with the company.
market surveillance, supervision and compliance monitoring of trading activities,
including review of pricing of orders
- DSE have a well organised market surveillance department and they work as per
surveillance, supervision and compliance guideline of the exchange.
monitoring the timely and orderly release of price-sensitive information
- Listing and surveillance department monitor the timely and orderly release of price-
sensitive information. Besides, CEO directly take action against concerned
person/department for any anomalies in this regard.
monitoring of the timing and content of quarterly review statements and half-yearly and
annual financial statements
- Listing Department monitor the timing and content of half-yearly and yearly financial
statement in line with listing regulations as well as other applicable laws.
SAFE: STRENGTHENING STOCK EXCHANGE LISTING REGIMES AND
REGIONAL HARMONISATION PROJECT
Annex 2. 2: DSE – Dhaka : Bangladesh 14
investigating suspected market abuses and liaising with other regulatory agencies.
- Stock exchanges take appropriate measures as per provisions of prevailing securities
laws for investigating suspected market abuses and also liaise with other regulatory
agencies.
3. Is suspension of listing or trading of a company’s securities used as a regulatory
device on your market.? If so, provide details of the situations where suspension takes
place.
Yes.
Part 2 – Views on how the listing regime could be strengthened and improved
All SAFE member exchanges are asked to make a submission expressing their views on the
strengths, weakness, opportunities and threats of their current listing regime.
[Not provided]
Part 3 – Views on the scope for regional co-operation and harmonisation on
listing matters
Apectives on the key implementation dependencies. Notes on the development of regional
markets are set out in
