FE Report (November 14, 2010)
The DSE is going to submit today (Sunday) its proposals regarding the calculation of DGEN to the SEC for its approval, officials said.
The Dhaka Stock Exchange (DSE) will implement the new index calculating formula after getting approval from the Securities and Exchange Commission (SEC).
The committee suggested three proposals for calculating the DSE General Index (DGEN), and the draft of these proposals will be submitted to the SEC.
The proposals are: to reconstruct the existing index, or to launch a new index considering a base year, or to launch a new index from 2011 without any benchmark. The committee Thursday gave a presentation on the proposals before the DSE board of directors.
Northern University Vice-Chancellor Prof Dr Shamsul Haq, and Prof Dr Sadiqul Islam and Prof Dr Mahmud Usman Imam of Finance Department of Dhaka University were the members of the DSE-formed committee.
DSE President Shakil Rizvi said the index committee has made a presentation before us, and now we will seek approval from the SEC.
"The proposal, chosen by the SEC, will be implemented to calculate the DGEN," he added.
Earlier, the SEC issued a show-cause notice to the DSE for not correcting the DGEN. On October 26, the regulator asked the DSE to submit a report on development of the proposed uniform index by November 15.
Presently, the DSE is calculating the DGEN by taking into account the tradable shares of a company, but total shares of the company, including the locked-in shares, are added to the market capitalisation. Previously, the DSE considered the total shares of a company to calculate the index.
The Dhaka Stock Exchange (DSE) will implement the new index calculating formula after getting approval from the Securities and Exchange Commission (SEC).
The committee suggested three proposals for calculating the DSE General Index (DGEN), and the draft of these proposals will be submitted to the SEC.
The proposals are: to reconstruct the existing index, or to launch a new index considering a base year, or to launch a new index from 2011 without any benchmark. The committee Thursday gave a presentation on the proposals before the DSE board of directors.
Northern University Vice-Chancellor Prof Dr Shamsul Haq, and Prof Dr Sadiqul Islam and Prof Dr Mahmud Usman Imam of Finance Department of Dhaka University were the members of the DSE-formed committee.
DSE President Shakil Rizvi said the index committee has made a presentation before us, and now we will seek approval from the SEC.
"The proposal, chosen by the SEC, will be implemented to calculate the DGEN," he added.
Earlier, the SEC issued a show-cause notice to the DSE for not correcting the DGEN. On October 26, the regulator asked the DSE to submit a report on development of the proposed uniform index by November 15.
Presently, the DSE is calculating the DGEN by taking into account the tradable shares of a company, but total shares of the company, including the locked-in shares, are added to the market capitalisation. Previously, the DSE considered the total shares of a company to calculate the index.
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