Tk36cr LankaBangla Securities shares traded on alternative board

LankaBangla Securities shares worth Tk36 crore were traded at the newly formed Alternative Trading Board (ATB) on Monday.

Around 1.70 crore shares were transacted at Tk21.20 each, which was 4.95% higher than the previous session.

On 4 January, the Dhaka Stock Exchange (DSE) launched the ATB to facilitate trading of non-listed securities on the stock market.

On the opening day, 500 shares of LankaBangla Securities were traded and their prices increased by 3.36% to Tk15.40.

The subsidiary of LankaBangla Finance has a total equity of 26 crores. As per the rules, the company will offload 10% of its shares within the next 30 days.

LankaBangla Securities shares have so far jumped by more than 42%.

To minimise the risks of share manipulation, profits cannot be taken by selling shares within three months of purchase. Because the profit pull requires a three-month wait since the purchase, the gains must be deposited in the investor protection fund.

Besides, Pran Agro Limited's green bond of Tk200 crore has been listed on the first day of the alternative trading platform. However, no units of the bond were traded.

During the inauguration, Bangladesh Securities and Exchange Commission Chairman Professor Shibli Rubayat-Ul-Islam said, "I am optimistic that the New Year will be good for the stock market. Efforts are underway to introduce more new products.

"But the benefits of new products will not arrive overnight. Results will come gradually."

The alternative trading platform has 76 open-end mutual funds, 18 equity securities, and 15 debt securities ready for listing, according to sources.

DSE listing approval is required for these listings. However, it is not possible to raise capital by issuing new shares on the alternative trading platform, as is possible on the DSE main market. Only sponsors or existing shareholders are allowed to sell shares, and no more than 49% of a company's shares can be sold.

To participate in the Alternative Trading Board, securities must be converted into electronic form and deposited with the Central Depository Bangladesh Limited, and companies must also publish regular financial reports and hold annual general meetings.

Investors can purchase securities from the ATB through their beneficiary owner (BO) accounts in the main market of the DSE, or through brokerage firms of the Dhaka bourse.