FE Report (October 27, 2010)
The Dhaka Stock Exchange (DSE) is now calculating its index in line with the instruction of the securities regulator and international standard, officials said Wednesday.
Presently, the bourse is adjusting its index taking into account the tradable shares of a company but total shares, including locking shares, are added to the market capitalisation.
Previously, it was taking total shares of a company to calculate the index.
Asked whether it has taken permission from the Securities and Exchange Commission (SEC) prior to applying the new method in calculating the index, an official said, "We have maintained all the rules."
The DSE has calculated its index by adjusting the tradable shares of 24 companies in accordance with a decision taken at a meeting with the SEC Member Mansur Alam in the chair on June 2 at the SEC, he said.
The meeting was also attended by four SEC executive directors and one SEC director, DSE Chief Executive Officer (CEO) Satipati Moitra and Chittagong Stock Exchange CEO Mohammad Abdullah Mamun.
"I attended the meeting which discussed index calculation," Mohammad Abdullah Mamun said.
The FE obtained a copy of minutes of the meeting.
The second decision of the minutes, signed by Mansur Alam, noted that only the free-float or tradable shares of a security should be taken into account to calculate the index, not considering the total non-tradable shares under lock-in.
"The proposed uniform index should be calculated in line with the recommendations of the IOSCO's technical committee and international standards," the first decision of the minutes said.
A DSE letter sent to the SEC chairman on August 5 said, "Please note that the second decision of the said minutes applies to shares already incorporated about three months back as those companies' sponsor shares are still locked-in.
Presently, the bourse is adjusting its index taking into account the tradable shares of a company but total shares, including locking shares, are added to the market capitalisation.
Previously, it was taking total shares of a company to calculate the index.
Asked whether it has taken permission from the Securities and Exchange Commission (SEC) prior to applying the new method in calculating the index, an official said, "We have maintained all the rules."
The DSE has calculated its index by adjusting the tradable shares of 24 companies in accordance with a decision taken at a meeting with the SEC Member Mansur Alam in the chair on June 2 at the SEC, he said.
The meeting was also attended by four SEC executive directors and one SEC director, DSE Chief Executive Officer (CEO) Satipati Moitra and Chittagong Stock Exchange CEO Mohammad Abdullah Mamun.
"I attended the meeting which discussed index calculation," Mohammad Abdullah Mamun said.
The FE obtained a copy of minutes of the meeting.
The second decision of the minutes, signed by Mansur Alam, noted that only the free-float or tradable shares of a security should be taken into account to calculate the index, not considering the total non-tradable shares under lock-in.
"The proposed uniform index should be calculated in line with the recommendations of the IOSCO's technical committee and international standards," the first decision of the minutes said.
A DSE letter sent to the SEC chairman on August 5 said, "Please note that the second decision of the said minutes applies to shares already incorporated about three months back as those companies' sponsor shares are still locked-in.
No comments:
Post a Comment