BSEC approves AGB Ltd as CSE's strategic partner

ABG Ltd, a concern of Bashundhara Group, has become strategic partner of the Chittagong Stock Exchange (CSE) as Bangladesh Securities and Exchange Commission (BSEC) has given its approval on the proposal on Wednesday.
BSEC Executive Director Rezaul Karim, also spokesperson of the regulatory authority, confirmed the approval.
ABG Ltd applied to buy 25 per cent shares of the CSE as a strategic partner. BSEC approved the proposal on Wednesday, he confirmed.
Bashundhara Group's Managing Director Sayem Sobhan Anvir is also the Managing Director of ABG Ltd. The company is also trying to establish commodity exchange in the country with the CSE.
Earlier, the CSE sent Bashundhara's proposal to the BSEC on August 1  this year for its approval. ABG Ltd is working in a joint venture with an America-based organisation for necessary technical support in managing the stock exchange, according to the sources.
According to the Demutualisation Act, there is an obligation to sell 60 per cent of blocked shares among strategic, institutional and general investors. Of those, 25 per cent of the stock exchange's total shares will have to be sold to strategic investors.
After that, the remaining 35 per cent will have to be sold to general and institutional investors through the initial public offering (IPO) process.
On the other hand, 40 per cent of the shares are owned by members of the stock exchange or brokerage firms.
Since 2016, the regulator has been extending the time to look for strategic investors every year based on the company's applications.
Earlier, in September 2018, the Dhaka Stock Exchange (DSE) transferred 25 per cent of its shares to strategic investors - the Chinese consortium of Shenzhen Stock Exchange and Shanghai Stock Exchange. The DSE sold 25 per cent of shares for Tk 962 crore, with each share priced at Tk 21.