DSE gets fund from Chinese strategic partner tomorrow

Staff Correspondent

3 September, 2018 12:00 AM printer

The much expected strategic partnership agreement between the Dhaka Stock Exchange (DSE) and the Chinese consortium of Shenzhen Stock Exchange and Shanghai Stock Exchange will go into effect from today (Tuesday) with transfer of fund.

The Dhaka Stock Exchange (DSE) is set to receive the fund from its Chinese strategic partner as well as formally transfer its 25 percent share to the Chinese consortium.

After completing the procedure, the DSE and the Chinese consortium will hold a joint press briefing at a city hotel on Tuesday.

According to DSE sources, the consortium will complete its payment of around Tk 947 crore for the share purchase through a bank account of DSE today (Sept 3). The Dhaka bourse will also send the shares to the beneficiary owner's account of the Chinese stock exchanges on the same day.

The fund would be deposited in the DSE’s Bank account on September 4, but the shareholders would get their money later. After transfer of the shares, 250 TREC (Trading Right Entitlement Certificate) holders of the DSE will receive around Tk 9.46 billion (946 crore) from the consortium. The fund will be distributed equally to the TREC holders as each of them sold 25 per cent of their share holdings.

As per Section 53 (N) of the Income Tax Ordinance, the government will get tax at the rate of 15 per cent on capital gains of the TREC holders from the fund.

After getting final approval from Bangladesh Securities and Exchange Commission (BSEC) on May 3, DSE signed an agreement on May 14 with the Chinese consortium as a strategic partner.

 Earlier, the board of directors of DSE picked the proposal from the Chinese on February 10 for selling its 25 per cent shares and submitted the proposal to the BSEC on February 22.