Directive regarding trading of Equity securities at ATB

Bangladesh Securities and Exchange Commission
Law Division
CMRRC Department
Regulatory Section www.sec.gov.bd

Directive
Dated, 20 May 2024

No. BSEC/CMRRCD/2022-409/78.— Whereas the Bangladesh Securities and Exchange Commission (hereinafter referred to as the "Commission") deems it to be proper that in the interest of investors and securities market, certain directions should be issued to the stock exchanges with regard to trading of equity securities at alternative trading board (ATB) and "Clearing Day" for settlement of securities traded at ATB;

Now, therefore, in exercise of the powers conferred by section 20A of the Securities and Exchange Ordinance, 1969 (Ordinance No. XVII of 1969), the Commission hereby directs the Dhaka Stock Exchange PLC. (hereinafter referred to as the "DSE") and the Chittagong Stock Exchange, PLC. (hereinafter referred to as the "CSE") as well as Central Depository Bangladesh Limited (hereinafter referred to as the "CDBL"), to ensure the following, namely: -

1. DSE and CSE shall ensure the following for the trading of equity securities traded at ATB:

   (a) For the first trading day, circuit breaker shall be 5% (five percent) on the fair value calculated as per Annexure 2 under Schedule A of the Dhaka Stock Exchange (Alternative Trading Board) Regulations, 2022 and the Chittagong Stock Exchange (Alternative Trading Board) Regulations, 2022:

   Provided that if no trade or transaction is executed within a period of 6 (six) months from the first trading day, designated stock broker shall commence the offer for sale as determined by the seller:
   
   Provided further that in such case of non-transaction, the seller may determine offer price at any price but not exceeding the fair value calculated as per Annexure 2 under Schedule A.
   

   (b) From the second and subsequent trading day regular circuit breaker shall be 5% (five percent) on the yesterday closing price or open adjusted price:

   Provided that the price of the equity securities traded at ATB shall not be varied by more than 30% (thirty percent) of the fair value calculated as per Annexure 2 under Schedule A at any point of time.
   

   (c) Settlement of transactions of all equity securities traded at ATB platform shall be on T+4 basis.

Securities Commission Bhaban, E-6/C, Agargaon, Sher-e-Bangla Nagar Administrative Area, Dhaka-1207, Bangladesh.

*

Bangladesh Securities and Exchange Commission
Law Division
CMRRC Department
Regulatory Section www.sec.gov.bd

2. The issuer of unlisted securities shall not be eligible to be listed at ATB if such company raises its paid-up capital except issuance of bonus shares utilizing retained earnings within the preceding 02 (two) years from the date of application to the stock exchange(s):

3. The latest financial statements of the issuer company before listing at ATB and subsequent to listing at ATB shall be audited by the panel of auditors as declared by the stock exchange(s) from time to time.

4. This directive shall supersede the provisions of clauses (e), (f) and (g) of sub-regulation (5) of regulation 9 of the Dhaka Stock Exchange (Alternative Trading Board) Regulations, 2022 and the Chittagong Stock Exchange (Alternative Trading Board) Regulations, 2022.

This Directive shall have immediate effect.

By order of the Bangladesh Securities and Exchange Commission,

Professor Shibli Rubayat-Ul-Islam
Chairman.

Securities Commission Bhaban, E-6/C, Agargaon, Sher-e-Bangla Nagar Administrative Area, Dhaka-1207, Bangladesh.