Alternative Investment

BSEC inaugurates alternative trading board

Alternative Trading Board (ATB) started its journey on Wednesday to facilitate transactions of non-listed equity securities, debt securities, open-end mutual funds and alternative investment funds.

Initially, ATB began with a company – LankaBangla Securities, and a bond – PRAN Agro guaranteed bond, on the newly introduced platform.

ATB is a trading based platform consisting of four types of securities, such as equity securities, debt securities, open-end mutual funds and alternative investment funds.

Only one trade of 500 shares of LankaBangla Securities was executed at Tk15.40 each, rising 3.35% from the reference price of Tk14.90.

Earlier on the day, Prof Shibli Rubayat Ul Islam, chairman of Bangladesh Securities and Exchange Commission (BSEC), inaugurated share trading on the new platform as the chief guest.

Md Eunusur Rahman, chairman of the Dhaka Stock Exchange (DSE), presided over the event, while BSEC Commissioner Shaikh Shamsuddin Ahmed was present as a special guest.

Efforts are underway to introduce more new products. But the benefits of new products will not be visible overnight and the positive results will come gradually, said the BSEC chairman.

People don’t want to invest unless there is an exit system, but ATB will give some comfort for investors as well as the issuers, he added.

Speaking on the occasion, DSE Chairman Eunusur Rahman said with the commencement of the new trading board, the stock market has taken a new leap and the benefits of the new board will come in the coming days.

He said they received a good response from the SME platform, which was introduced in September 2021.

The paid-up capital of LankaBangla Securities is Tk269 crore.

According to the ATB rules, LankaBangla Securities has to sell 10% of its shares on the market within 30 days.

Total size of the Pran Agro guaranteed bond is Tk210 crore.

The issue price is Tk898,378 per bond with a face value of Tk1 crore per bond.

Shaifur Rahman Mazumdar, managing director (acting) of the DSE, said the transaction will facilitate the transfer of ownership, branding, and exposure of the company, which will create liquidity and alternative investment opportunities for the potential investors.

The primary shareholders, including the sponsors and directors of the company, shall not offload or sell more than 49% equity securities or ordinary shares of the company, according to the DSE.

The ATB’s trading and settlement is similarly treated as “A” Category Securities on the main board. Also, anyone can transact on ATB through their beneficiary owner account.

As per the rules, the companies will not raise funds through the ATB.

The application fee is Tk10,000 on the ATB board.

The BSEC approved the ATB rules at the end of 2019.

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