Flash Report /
Bangladesh

Bangladesh: Alternative Trading Board to be launched from 4th January

  • Minimum holding period 3M to receive profit. Else profit will be transferred to Investors’ Protection Fund.

  • No margin loan facility will be provided for trading of equity, debt or alternative investment securities.

  • Circuit Breaker will be 5% daily but 4% circuit breaker for the first two trading session of a new issue.

Shopnil Paul
Shopnil Paul

Research Associate

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IDLC Securities
3 January 2023
Published byIDLC Securities

The ATB will facilitate trading of non-listed or de-listed securities, corporate bonds, alternative investment funds and open-end mutual funds.

There is no minimum capital requirement for non-listed companies to be traded on the ATB. Any non-listed firm registered with the Registrar of Joint Stock Companies and Firms (RJSC) will be allowed on the board. The board will debut with the listing of LankaBangla Securities Limited (Ticker: LBSL), a leading brokerage house.

The securities traded in ATB will be under ‘P’ category. The settlement cycle in ATB will be T+2. Same day netting facility is available for all instruments, except for those of Z categories.

Minimum holding period is 3 months to receive profit from investment. Otherwise the profit will be transferred to Investors’ Protection Fund.

No margin loan facility will be provided for trading of equity, debt or alternative investment securities.

Minimum free float of a security is 10%, which needs to be ensured by the first 30 trading sessions. The primary shareholders can sell maximum 49% stake through ATB platform.

The sponsors or directors of the issuer company shall be restricted from buying ordinary shares for 1 year from the date of listing of its securities at ATB.

Circuit Breaker will be 5% daily but 4% circuit breaker for the first two trading session of a new issue.