The port city's bourse now has until March 8, 2021, for selecting a partner
The Bangladesh Securities and Exchange Commission (BSEC) has granted Chittagong Stock Exchange (CSE) another year to find a strategic partner, similar to Dhaka Stock Exchange's arrangement with the Chinese consortium of Shenzhen Stock Exchange and Shanghai Stock Exchange.
The port city's bourse now has until March 8, 2021, for selecting a partner.
In March of this year, the CSE requested the stock market regulator to extend the deadline for selecting a strategic partner, after the bourse failed to reach an agreement with any institution.
According to the Stock Exchange Demutualization Act 2013, 40% of the CSE's shares were credited to its members’ accounts, while the remaining 60% were kept in a blocked account.
After selling 25% of its shares from the blocked account to the strategic investor, the bourse would float the remaining 35% through an initial public offering (IPO).
Earlier, the CSE had been looking for strategic partners from China, the United Arab Emirates (UAE), and Hong Kong to sell 25% of its ownership, as per the Demutualization Scheme.
Meanwhile, in September, 2018, the much-anticipated strategic partnership agreement between the Dhaka Stock Exchange (DSE) and the Chinese consortium of Shenzhen Stock Exchange and Shanghai Stock Exchange came into effect.
The DSE authorities handed over 25% of DSE shares to the consortium on the day. The Chinese consortium paid Tk947 crore to the DSE for the shares.