DSE seeks safeguards for shareholders in Islamic bank mergers
A seven-member DSE delegation raised the concerns during a meeting with Bangladesh Bank Governor Md Mostaqur Rahman at the central bank headquarters in the capital
The Dhaka Stock Exchange (DSE) on Thursday urged Bangladesh Bank to protect general shareholders during the merger process of five troubled Islamic banks, warning that investors could lose ownership stakes without fair compensation.
A seven-member DSE delegation, led by Chairman Mominul Islam, raised the concerns during a meeting with Bangladesh Bank Governor Md Mostaqur Rahman at the central bank headquarters in the capital.
The delegation said investors in First Security Islami Bank, Social Islami Bank, Global Islami Bank, Union Bank and EXIM Bank were facing growing uncertainty over the merger process.
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DSE leaders warned that the burden of weak management, irregularities and financial mismanagement by previous authorities should not be transferred to general shareholders who were not responsible for the banks' present condition.
They urged the central bank to ensure transparency throughout the merger proceedings and take steps to safeguard the interests of small investors.
The stock exchange also presented a broader roadmap aimed at modernising the capital market and improving long-term financial stability.
Among the proposals, the DSE suggested reducing the share settlement cycle from T+2 to T+1 to improve trading efficiency. It also sought Bangladesh Bank's support in simplifying the Non-Resident Investor Taka Account process to attract more foreign portfolio investment.
The DSE requested assistance in gradually liquidating its fixed deposits held with scheduled banks to finance technology upgrades and infrastructure development.
The delegation also proposed extending Real-Time Gross Settlement facility hours and allowing the stock exchange direct access to Credit Information Bureau reports to strengthen risk assessment.
Other proposals included developing a secondary market for government securities, introducing Sukuk trading and creating an IPO and bond-based recapitalisation system.
According to a DSE press release, the governor assured the delegation that the central bank would prioritise the issues and take necessary steps to protect public interests and support the development of the capital market.
