The securities regulator has formed a five-member committee to make recommendation on the development of OTC (over-the-counter) market of Dhaka Stock Exchange (DSE).
The committee was formed on Tuesday at a meeting chaired by the chairman of the Bangladesh Securities and Exchange Commission (BSEC) Professor M. Khairul Hossain.
BSEC executive director Farhad Ahmed is the convener of the committee, while three executive directors Dr. ATM Tariquzzaman, Md. Anowarul Islam, Md. Mahbubul Alam are the members of the committee. BSEC director Md. Mansur Rahman has been made the member secretary of the committee.
Earlier, in September, 2017 the securities regulator formed another committee to prepare a report on possible changes of rules for the OTC market. The committee has already submitted its report.
The five-member committee which was formed on Tuesday will review the report of previous committee and submit recommendations to the commission by April 8 this year.
The regulatory move came following the premier bourse's proposal regarding changing existing rules of the OTC market.
The DSE's proposal regarding reforms of the OTC market was submitted to the BSEC in March, 2017.
Md. Shakil Rizvi, a former DSE president, said the complexities of the OTC market include, among others, the companies' non-compliances and their paper-based shares.
"The companies of the OTC market have not yet converted their paper shares into electronic ones. That's why the transactions in the OTC market are not easy like the main bourse," Rizvi said.
He said the OTC market should also play the role of a mediator in case of hand over of shares by the parties of non-listed companies.
"Sometimes, one party may not trust another one during transfer of shares. In that case, the OTC market can be a mediator to conduct proper transfer of their shares," Rizvi added.
The DSE sources said the companies which do maintain communication with the securities regulator and stock exchange may be excluded from the OTC market.
There is no existence of some companies of the OTC market. Such companies also do not response to the regulatory queries.
Presently, a total of 65 companies are listed with the OTC market and some 32 companies try to comply with the securities rules.
The OTC market started its operation in 2009 with the companies which were de-listed from the main bourse due to their non-performance.
After inception of the OTC market, three companies were shifted to main bourse following their improvement in operation.
