Bourses' leaders oppose CDBL listing

FE Report (June 30, 2011)

The leaders of the bourses have opposed the move to listing Central Depository Bangladesh Limited (CDBL) with the stock exchanges saying that the company might become controversial if it fails to safeguard the investors' rights.

The leaders of the bourses who are also directors of the CDBL expressed the opinion Wednesday while they paid a courtesy call on chairman and members of the Securities and Exchange Commission (SEC).

However, the stock market experts expressed mixed reactions regarding the listing issue.

Md Shakil Rizvi, president of the Dhaka Stock Exchange (DSE), said after the listing of CDBL, investors' confidence might be misplaced if the company fails to maintain the formalities of a listed company.

"CDBL is a very sensitive organisation, which preserves the information of all listed companies. So we should keep the company above controversy," Mr Rizvi told the FE.

He also said there is no example of listing such companies around the world.

"If the company fails to offer dividends properly, investors will raise questions against the company performance," he added.

He said at the same time if any chaos takes place at the annual general meeting (AGM) of the company, its reputation will be hampered.

When asked, former SEC chairman and former adviser to the caretaker government AB Mirza Azizul Islam supported the opinions of bourses' leaders for the time being.

"So many problems arise at the AGMs, which may reduce investors' confidence to CDBL if it goes public. So, at this stage I do not support the proposal of listing of the company," Mr Islam told the FE.

But, he said CDBL could be listed after the demutualisation of the country's bourses.

Former DSE chief executive officer Professor Salauddin Ahmed Khan told the FE that it was not true that there was no example of listing such companies like CDBL around the world.

"There are many examples across the globe regarding the listing of such companies. Even the stock exchanges are listed in other countries," Mr Khan commented.