The Dhaka Stock Exchange (DSE) yesterday launched “Smart Submission System of DSE”, an online data submission platform for listed firms, aiming to ease hassles and reduce error.
With the help of its strategic partner Shenzhen Stock Exchange (SZSE), the premier bourse introduced the system, in which the issuer companies from now on will be able to submit their information online.
At the launching event of the system at DSE office, ATM Tariquzzam, managing director of the bourse, said the platform will help issuers to be compliant with rules. Besides, there will be realtime information transfer between issuers and investors.
“Therefore, the market will be efficient based on proper information, and irregularities in the market will also come down,” he added.
Calling the system a “timely initiative,” Rupali Chowdhury, president of the Bangladesh Association of Publicly Listed Companies said, “Companies will be the biggest beneficiaries of this system.”
She said integrating the platform will not be an issue for large companies like Berger or Grameenphone. However, companies that are not automated will have some trouble initially. The association will support those to utilise the platform.
“The requirements of stock exchanges and the regulator are the same, but we had to submit information in three mediums. Now with one medium, it will be much easier for the issuers,” she expressed.
Earlier, the issuers had to submit information through traditional means of communication such as FAX, letter, email, and courier, or even post. After receiving the information, the DSE used to disseminate them manually.
This information consists of price sensitive information, yearly, half-yearly and quarterly financial data, meetings, record dates, shareholding status, dividend status, and expansion of business among others.
Professor Hafiz Md Hasan Babu, chairman of the DSE said, “To make the capital market smart, its operations should be made paperless. And that paperless journey has started today with the launch of this platform.”
Steps against non-compliance
When asked why the DSE is not taking action against non-compliant companies, Dhaka bourse officials explained that while the DSE has the authority to do so, it must first go through the Bangladesh Securities and Exchange Commission (BSEC) to take direct action.
Citing an example, Md Rabiul Islam, head of listing affairs, said the DSE once delisted Rahima Food Corporation and Modern Dyeing Limited for closure of operation for six months. But later, the BSEC in a notification re-listed them to the market.
Md Rabiul Islam presented the keynote, where he sheds light on the purpose, usage and technical framework of the software and various modules.