Trading of SMEs begins at Dhaka bourse

The six small-and-medium enterprises (SMEs) listed on the DSE-SME board of the Dhaka bourse yesterday began secondary trading.

The DSE-SME, a small-cap board, was rolled out on April 30, 2019 with a view to facilitating finance for SMEs from the stock market.

Prof Mizanur Rahman, a commissioner of the Bangladesh Securities and Exchange Commission (BSEC), inaugurated the platform's first secondary trading session at a programme organised by the DSE at its office in Nikunja.

Among the six SMEs to begin secondary trading, Master Feed Agrotec and Oryza Agro Industries were recently listed after completing their qualified investor offers (QIO).

The four other companies -- Himadri, Wonderland Toys, Bengal Biscuits, and Apex Weaving and Finishing Mills -- were brought over to the SME board from the over-the-counter market.

"Thanks to the SME platform, SMEs in the country have the chance to raise funds from the stock market, which would impact the entrepreneurs positively," Rahman said while addressing the event as chief guest.

There are a huge number of SMEs in Bangladesh but financial reporting in the sector is not being properly carried out as firms themselves are dependent on inefficient people.

"So, their production costs are also higher," he added.

The BSEC commissioner went on to say that the DSE and SMEs should work together to enhance their efficiency, corporate governance and sustainability to this end.

"The bourse is responsible for ensuring investor interests are met, so it should prepare an online dashboard where companies can quickly publish their financial reports," he said.

Md Eunusur Rahman, chairman of the DSE, and Tarique Amin Bhuiyan, managing director, also spoke at the event.

Earlier this year, the Chattogram Stock Exchange inaugurated its Small Capital Platform, the first of its kind in the country, through the debut of Nialco Alloys Limited on June 10.

Now, the port city bourse has decided to launch a separate index for the Small Capital Platform, namely the CSE-SME Index, next Sunday. The new index will be calculated based on the prices of five new companies alongside the existing Nialco Alloys on the first trading day.

"In addition to its existing five major indices and 18 sectoral indices, the CSE will introduce a new index," it said in a press release.

This index will be a free-float Index with a base of 1000 points.

Once the CSE-SME is launched, new issues will be added as per regular index practices.