DSE rings the bell for SMEs
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard

Monday
August 08, 2022

Sign In
Subscribe
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
MONDAY, AUGUST 08, 2022
DSE rings the bell for SMEs

Stocks

TBS Report
30 September, 2021, 09:50 pm
Last modified: 30 September, 2021, 09:56 pm

Related News

  • Capital market prepares to facilitate startups
  • City Bank perpetual bond’s half-yearly coupon rate declared at 9.58%
  • US Senate's $430 billion climate bill to add tax on stock buybacks
  • Stocks climb on xx ahead of US jobs data
  • Stocks continue to rise with active trading

DSE rings the bell for SMEs

TBS Report
30 September, 2021, 09:50 pm
Last modified: 30 September, 2021, 09:56 pm
Representational image. Photo: TBS/Mumit M
Representational image. Photo: TBS/Mumit M

An alternative financing window for the country's thriving small and medium enterprises opened on Thursday, with the Dhaka Stock Exchange (DSE) ringing the bell to onboard six small-cap companies into its new platform – Small Capital Companies' Platform, popularly called SME or small-cap platform.

With the SME board fully functional, the capital market of Bangladesh is set to reach a new level, said DSE Managing Director Tarique Amin Bhuiyan.

Over one lakh SME companies are registered with the country's company registrar and they can opt for the stock market listing through the DSE SME platform, he added.

Bangladesh Securities and Exchange Commission's (BSEC) Commissioner Dr Mizanur Rahman said, of the registered SME companies, most are making profits.

Speaking as chief guest, Dr Mizanur Rahman said the firms borrow from multiple inconvenient sources to run their business, while the SME platforms of the bourses offer them equity alongside borrowing opportunities through debt instruments.

"SME board listing would also help improve small firms' operational efficiency, accounting practices, and good governance alongside providing them with the needed money," Dr Mizanur added.

Four of the previously listed small-cap firms – Apex Weaving and Finishing Mills, Bengal Biscuits, Himadri Ltd, and Wonderland Toys – which were ousted to the over-the-counter (OTC) market a decade ago, have been accommodated on the SME platform.

Two new companies Master feed Agrotec and Oryza Agro Industries joined following their recent capital raising from the emerging platform of the capital market.

Inspired by the SME listing success stories in the bourses of China, India, and many other countries, Bangladesh's capital market regulator, a few years back, took an initiative to have a separate market from where SME companies can raise equity to avert debt burdens and also let their shares to be traded on screen.

China has listed over a thousand SME firms on its Shenzhen Stock Exchange and announced to open a separate stock exchange in their capital only for the SME companies with a special focus on technology.

India's Bombay and National Stock Exchanges together helped over two hundred small-cap companies raise capital and let shares be traded on the bourses.

Chittagong Stock Exchange (CSE) rang the bell for its first SME company Nialco Alloys on 10 June this year and the DSE SME firms except Himadri Limited began trading on the port-city bourse on Thursday.

Unlike the main trading boards, the SME platforms are dedicated to qualified investors which include only registered eligible institutional investors and individuals having at least Tk50 lakh invested in the stock market.

Retail investors are allowed to only sell in the SME boards as the market tends to be more volatile because of the low-cap nature and a comparatively wider range of daily price deviation allowed.

DSE Chairman Md Eunusur Rahman, DSE Director and SME Foundation Chairman Dr Md Masudur Rahman along with the entrepreneurs of the onboarding firms were present at the ceremony. 

M Shaifur Rahman Mazumdar, chief operating officer of DSE, elaborated on the SME firms' way to the new platform and what they need to comply with after listing.

A firm must grow its paid-up capital to at least Tk5 crore after raising money from the SME platform and it cannot cross Tk30 crore.

As soon as a listed SME firm grows bigger than the threshold, it must apply to shift to the main market.

The regulations, compliances and cost of listing, everything is offering a breathing space to the SME firms to welcome them on board.

The six firms on the debut session did not see any seller for their stocks on Thursday.

Economy / Top News

DSE / SMEs / Stock

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • India seeks to oust China firms from sub-$150 phone market
    India seeks to oust China firms from sub-$150 phone market
  • German ambassador to Bangladesh Achim Tröster. Illustration: TBS
    EU likely to be inflexible to all GSP+ standards: German ambassador
  • PM sketches Bangmata's key-shadow role in independence struggle
    PM sketches Bangmata's key-shadow role in independence struggle

MOST VIEWED

  • Non-disclosure leaves Delta Spinners investors in the dark
    Non-disclosure leaves Delta Spinners investors in the dark
  • Photo: Collected
    Price floor helps stocks withstand fuel shock
  • Dutch-Bangla Bank receives ‘AAA’ credit rating
    Dutch-Bangla Bank receives ‘AAA’ credit rating
  • City Bank perpetual bond’s half-yearly coupon rate declared at 9.58%
    City Bank perpetual bond’s half-yearly coupon rate declared at 9.58%
  • Himadri Limited asked to offload 10% more shares
    Himadri Limited asked to offload 10% more shares
  • Rangamati Food Products: Revival of a food processor
    Rangamati Food Products: Revival of a food processor

Related News

  • Capital market prepares to facilitate startups
  • City Bank perpetual bond’s half-yearly coupon rate declared at 9.58%
  • US Senate's $430 billion climate bill to add tax on stock buybacks
  • Stocks climb on xx ahead of US jobs data
  • Stocks continue to rise with active trading

Features

Will Glass Cosmetics be your next skincare holy grail?

Will Glass Cosmetics be your next skincare holy grail?

4h | Brands
Akij Tableware: More than just dishes on a table

Akij Tableware: More than just dishes on a table

4h | Brands
Deeply depressed and afraid of living in total darkness, the Noakhali-based housewife Rasheda desires nothing but to get her vision back. Photo: Noor-A-Alam

Blind people need 25,000 corneas. Sandhani gets around 25

5h | Panorama
Picture: Collected

The six billion dollar man

6h | Panorama

More Videos from TBS

Ukraine-Russia war at new stage, fear of nuclear radiation increasing

Ukraine-Russia war at new stage, fear of nuclear radiation increasing

45m | Videos
First Aid for Stroke: What you should know

First Aid for Stroke: What you should know

3h | Videos
Is smartphone use reducing our memory?

Is smartphone use reducing our memory?

5h | Videos
City dwellers in trouble due to lack of public transport

City dwellers in trouble due to lack of public transport

5h | Videos

Most Read

1
Diesel price hiked by Tk34 per litre, Octane by Tk46
Energy

Diesel price hiked by Tk34 per litre, Octane by Tk46

2
Housing projects sprouting up by Dhaka-Mawa expressway
Real Estate

Housing projects sprouting up by Dhaka-Mawa expressway

3
July remittance hits two-year high
Economy

July remittance hits two-year high

4
Infographic: TBS
Banking

Dollar rate will be left to market after two months: Governor

5
Bangladesh to resume talks for Ukrainian wheat import
Economy

Bangladesh to resume talks for Ukrainian wheat import

6
A liquefied natural gas (LNG) tanker is tugged towards a thermal power station in Futtsu, east of Tokyo, Japan November 13, 2017. REUTERS/Issei Kato/File Photo
Energy

Summit proposes long-term LNG supply to Petrobangla

EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2022
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net