Bangladesh Securities and Exchange Commission (BSEC) has rejected the application of Chittagong Stock Exchange (CSE) to directly list 35 per cent of its blocked shares on Dhaka Stock Exchange, citing legal and procedural shortcomings.
The decision was taken at the regulator’s 967th commission meeting chaired by BSEC Chairman Khondoker Rashed Maqsood on Tuesday, according to a press statement.
BSEC said direct listing is prohibited for any company other than a government-owned entity, and CSE’s plan to offload 20 per cent through private placement and 15 per cent through public placement conflicted with the Exchanges Demutualisation Act, 2013.
It also noted the absence of operating profit from CSE’s core business, failure to submit an information document or prospectus, and the omission of board and shareholder meeting decisions approving the listing.
The move halts CSE’s latest attempt to go public, which it had framed as part of its growth and market integration strategy.
Neither of the country’s two stock exchanges are publicly listed. The Exchanges Demutualisation Act, 2013 requires them to have strategic investors and keep part of their shares in blocked accounts for future sale to the public.
The DSE brought in the Shenzhen-Shanghai Stock Exchange consortium as its strategic investor, while Bashundhara Group holds that role for CSE.