The Dhaka Stock Exchange (DSE) has introduced a new module with a provision of allotting 15% shares of an initial public offering (IPO) for the employees of the issuer.
Dr Shaikh Shamsuddin Ahmed, a commissioner at the Bangladesh Securities and Exchange Commission (BSEC), inaugurated the new software module as the chief guest on Wednesday.
As per the new module, when a company goes public, its employees will be allotted 15% of its shares without a deposit of Tk20,000 in their beneficiary owner's (BO) accounts, which is mandatory for general investors.
Terming it a big step for the country's premier bourse, the BSEC commissioner said, "The DSE will have to bring new products to the capital market. For this, the DSE has to play a major role as well as fulfil basic responsibilities."
"Employees of several major companies in the world are also allotted company shares in IPOs. If employees own 15% shares, they will work well for the development of the company. In this case, with the development of the company, they will also enjoy the benefits," he added.
About the new module, BSEC Executive Director Mohammad Rezaul Karim said, "Due to an increase in compliance and accountability when a company gets listed, employees often have a negative perception of listing in the capital market. Now, employees will encourage a company's listing due to the 15% share allotment incentives."
"An employee will not be able to apply for a general quota. The software provides a way to prevent a company from applying for the primary shares by 'employing new people' during the IPO," he added.
M Saifur Rahman Mazumder, acting managing director at the DSE, delivered the welcome address at the function.
Rabiul Islam, senior manager at Listing Affairs Department at the premier bourse, presented the keynote paper at the inaugural ceremony and awareness workshop on the new module.
DSE Chief Technology Officer Md Ziaul Karim and DSE Training Academy Head and Senior Manager Muhammad Rony Islam, among others, were present at the programme.