The Dhaka Stock Exchange (DSE) is set to receive the fund from its Chinese strategic partner, which is a consortium of two stock exchanges, within a week against the DSE's shares sold to the partner.
The Bangladesh Securities and Exchange Commission (BSEC) approved the proposal made by the Chinese consortium for being a strategic partner of Bangladesh's premier bourse on May 3 last.
As per the BSEC approval, the DSE has sold its 25 per cent stake or more than 450.94 million shares to the Chinese consortium comprising Shenzhen Stock Exchange and Shanghai Stock Exchange.
Minhaz Mannan Emon, a DSE director, said the Bangladesh Bank already approved the Ron-Resident Investors Taka Account in which the fund from the Chinese consortium will be received.
"All relevant procedures have already been done. We hope to receive the fund from the Chinese consortium within a week," Emon said.
He also said the exchange's 25 per cent stake would also be transferred to the BO (beneficiary owner) account of the strategic partner while receiving the fund.
The Chinese consortium offered Tk 22 for each of the 25 per cent shares. But the price declined a little bit following the dividend offered by the DSE.
After transfer of the shares, 250 TREC (Trading Right Entitlement Certificate) holders of the DSE will receive around Tk 9.46 billion (946 crore) from the consortium. The fund will be distributed equally to the TREC holders as each of them sold 25 per cent of their share holdings.
As per Section 53 (N) of the Income Tax Ordinance, the government will get tax at the rate of 15 per cent on capital gains of the TREC holders from the fund.
Md. Shakil Rizvi, a former DSE president, said the amount of capital gains would vary from one TREC holder to another due to the differences of their costs of acquisition.
"Those who will see the costs of acquisition of their respective 25 per cent shares are less than the amounts they would get by selling the same volume of stakes will have to pay tax at source," Rizvi said.
mufazzal.fe@gmail.com