Star (November 2, 2010)
The premier bourse has formally apologised to the Securities and Exchange Commission (SEC) for launching a different index calculation method without disclosing its details.
The Dhaka Stock Exchange (DSE) sent a letter to the stockmarket regulator on Sunday, as the SEC earlier sought explanation from the bourse following a report on the issue.
"I have received the DSE letter," said Mansur Alam, member of the SEC.
The DSE in the letter, signed by its Chief Executive Officer Satipati Moitra, said it started to calculate the index in line with a decision taken at a joint meeting on June 2. The bourse said it took the decision as a final one and implemented it.
The DSE said it now understands that a misunderstanding has taken place over the decision of the June 2 meeting.
On June 2, the SEC and the Dhaka and Chittagong stock exchanges decided that the bourses will calculate the impacts of price movement of securities taking into account only the tradable shares of a listed company, instead of considering its total shares.
After that, the DSE started to compute the impacts of the stocks on the index, but did not disclose the details.
The bourse applied the method to at least 24 companies, as these were newly listed and had non-tradable shares.
Analysts said there is nothing wrong with using the
tradable share-based counting method, but the system should have been disclosed to all. If the DSE had made it public, many would have thought twice to invest in securities, they said.
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