The country's stock exchanges will form a new company, namely Centre Counterparty Bangladesh Limited (CCBL), within a week to foster payments system against the shares sold through the trading platform.
After a negotiation of shareholding portions to be held by the bourses, the long-awaited formation of the CCBL reached a final stage on Wednesday, when the boards of Dhaka and Chittagong stock exchanges held a meeting and finalised formation of the company.
The initial paid-up capital will be Tk 3.0 billion.
"After taking necessary regulatory approval, the exchanges will complete the formalities with the Registrar of Joint Stock Companies and Firms (RJSC) to form the CCBL," said a CSE official, who attended the meeting.
Presently, the bourses settle payments against shares through different panel banks.
"After starting its functions, the CCBL will conduct the settlement of payments against the shares sold in the trading platform," said Minhaz Mannan Emon, a DSE director.
He said the CCBL would also be helpful for introducing derivatives.
The share settlement, another part of trading, is conducted by the Central Depository Bangladesh Limited (CDBL).
As per the exchanges' negotiation, Dhaka Stock Exchange (DSE) will hold 45 per cent shares of the CCBL while Chittagong Stock Exchange (CSE) 20 per cent, banks 15 per cent, CDBL 10 per cent and strategic investor the rest 10 per cent shares.
"The issue of holding stakes was approved unanimously with the consent of all the DSE board members," CSE said in a statement.
The DSE earlier published a circular for banks interested to be stakeholders in the CCBL.
Following the circular, 26 banks have already been included as shareholders of the CCBL, a DSE official said. The banks jointly will hold 15 per cent stakes.
DSE board members and CSE Director Md. Sayadur Rahman and CSE Dhaka Office in-Charge Md. Ghulam Faruque were also present at Wednesday's meeting.
DSE Chairman Prof. Dr. Abul Hashem, Director Rakibur Rahman and Director Minhaz Mannan Emon played proactive role in settling the issue, the CSE said.
In the meantime, CSE Chairman DR. A. K. Abdul Momen congratulated the DSE Chairman Prof. Dr. Abul Hashem and its board members for honouring CSE's request to accommodate 20 per cent shares for CSE in the CCBL.
He also congratulated the DSE board and its chairman for successful agreement with the Chinese consortium.
Earlier in October 2015, Bangladesh Securities and Exchange Commission (BSEC) approved a draft act on formation of a separate clearing and settlement entity for ensuring smooth settlement of securities and future contracts.
