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Dhaka Stock Exchange seeks regulatory approval for Chinese buyers' bid

Dhaka Stock Exchange Ltd. is pushing for regulatory approval for the acquisition of a 25% stake in the bourse by a consortium of Chinese stock exchanges despite alleged interference by spurned Indian bidders, The Daily Star reported Feb. 20.

DSE plans to send the Chinese party's investment proposal to the Bangladesh Securities and Exchange Commission, or BSEC, in the week of Feb. 19, said Majedur Rahman, CEO of the Bangladeshi bourse.

The Bangladeshi bourse picked the proposal of China's Shanghai and Shenzhen stock exchanges over the National Stock Exchange of India Ltd.'s bid. The Chinese stock exchanges made a joint bid of 22 Bangladeshi taka per share, for a total price of about US$122 million, while National Stock Exchange of India offered to buy a 25% stake at 15 taka per share.

DSE's board picked the Chinese consortium's proposal on Feb. 10.

Meanwhile, NSE CEO Vikram Limaye reportedly lobbied with the regulator to persuade DSE to accept the Indian exchange's offer. The commission allegedly called DSE Chairman Abul Hashem and Rahman to ask them to further study both the proposals, a move seen by DSE members as the regulator acquiescing to the demands of the Indian party.

Transparency International Bangladesh, a non-governmental organization against corruption, criticized the BSEC for interfering in the process.

The BSEC refuted the group's allegations, saying it had not received any proposal from the DSE to consider.

As of Feb. 19, US$1 was equivalent to 82.99 Bangladeshi taka.