The Bangladesh Securities and Exchange Commission (BSEC) has sent 23 companies to the newly built Small Capital Platform of the bourses from the over the counter (OTC) markets.
Seven of them are in operation which are Apex Weaving and Finishing Mills, Bangladesh Hotels, Bengal Biscuits, Gachi Hata Aquaculture Farms, Himadri, Wonderland Toys and Yousuf Flour Mills Ltd.
On the other hand, 16 companies shifting to the Small Capital Platform are yet to come back to operation.
They are Al-Amin Chemical, Alpha Tobacco, Amam SeaFood, Ashraf Textile Mills, Bangladesh Electricity Metre Company, Bangladesh Leaf Tobacco Company, Bengal Fine Ceramic, Bionic Sea Food Exports, Dhaka Fisheries, Excelsior Shoes, Lexco, Meghna Shrimp Culture, Raspit Data Management, Rangamati Food Products and Jago Corporation.
The capital market regulator, in a separate notification on Thursday, ordered the parties concerned –the companies, bourses and the central depository service provider – to accomplish the share dematerialisation process in 30 days.
Dematerialisation is the process to convert paper certificates into electronic format and also depositing the electronic securities to the Central Depository Bangladesh Ltd.
With the notification, the poorly functional OTC market has been closed as a trading platform of securities ousted from the main trading board of the bourses, explained BSEC Executive Director and Spokesperson Rezaul Karim.
The bourses and shifting companies would work together to begin trading in the Small Capital Platform, he added.
The Small Capital Platform will have an index constituting the on-board firms and small capital companies. Besides, the shifting ones will be allowed to raise capital through registered qualified investors offer.
Qualified investors include institutions and high net worth individuals.
In the Small Capital Platform, retail investors are allowed to only sell securities.
The BSEC also named the 29 OTC firms which are set to leave all the markets and their sponsors will be bound to buy back public shares before being delisted.
Meanwhile, the remaining 18 companies, out of 61, having a large proportion of public investors will be sent to the Alternative Trading Platform of the bourses as their sponsors found it hard to buy back so many public shares.
Alternative Trading Board of the bourses will host the trading of any non-listed securities with a streamlined entry process. Retail investors may both buy and sell securities there.