What is the Alternative Trading Board (ATB)?

The Alternative Trading Board (ATB) is a separate Trading Board created by the Dhaka Stock Exchange Ltd. (DSE) to raise capital for Alternative Asset Class Securities. It is meant for an alternative transfer system of ownership of any securities or units of any fund and only for investment or disinvestment purpose.

Initially, the main Asset classes which will be made available on the ATB are:

• Equity Securities 
• Debt Securities
• Open-End Mutual Funds
• Alternative Investment Funds

Equity Securities: The issuer of an unlisted or de-listed equity securities may avail the listing and trading facilities at the ATB. Initially, most of these Securities may be the same Securities trading on the DSE’s Over-The-Counter (OTC) Board. Since the OTC Board is an inefficient market, The ATB will offer respite for both issuers and shareholders.

Debt Securities: The issuer or originator of an unlisted or de-listed debt securities or Asset Backed Securities (ABS) or Islamic Shari’ah Based Securities (ISBS) may avail the listing and trading facilities of its securities at the ATB.

Open-End Mutual Funds: The Asset Manager of an unlisted open-end mutual fund may avail the listing and facilities of sale or redemption (repurchase) of its units at ATB

Alternative Investment: The fund manager of an unlisted alternative investment fund may avail the listing and facilities of trading of its units at ATB.

In comparison to the Main Trading Board, what is unique about the ATB is that it discourages Secondary Trading (such as Day Trading) of Securities and/or Units. For example: If any investor or beneficial owner makes any gain by the purchase and sale, or the sale and purchase, of any equity security within a period of less than 3 (three) months, such investors or beneficial owner shall make a report to the Exchange and tender the amount of such gain to the investors’ protection fund.
 
There are some unique Trading regulations under the Alternative Trading Board Regulations, 2022.
 
Company Requirements:

• The issuer of unlisted securities cannot be listed on the ATB if the company has raised its paid-up capital, except through the issuance of bonus shares from retained earnings, within the two years preceding the application date to the stock exchange(s). 

Listing Application:

• The issuer (unlisted company) applies to the exchange for listing on ATB.

Minimum Requirements:

• No minimum paid-up capital is required for listing on the ATB.

Trading Rules:

• Any investor can trade on the ATB through their BO account. 
• Settlement of all equity securities transactions will be on a T+4 basis. 
• There is no Margin Loan facility for all instruments listed here apart from Open-End Mutual Funds. 

Price Movement:

• On the first trading day, the circuit breaker will be 5% of the fair value.
• From the second and subsequent trading day, the regular circuit breaker will be 5% based on the previous day's closing price. 
• The price of any equity security traded on the ATB cannot vary by more than 30%. 

Shareholder Selling Requirements:

• For Equity Securities, primary shareholders (including sponsors and directors) must offer for sale at least 10% of their holdings within 30 days of trading commencement. They can sell up to a maximum of 49% of their holdings. 
• If the company is transferred to ATB by the Commission's direction (regulatory body), there are no restrictions on share offloading by primary shareholders (except sponsors and directors).
• Primary shareholders, sponsors, and directors must collectively hold at least 51% of the ordinary shares at all times. 

Trading Commencement Process:

• Stock broker(s) designated by the issuer company shall commence the offer for sale of equity securities at ATB in favor of the primary shareholders for the first two trading days. 
• There will be no trading on the third day to allow the market to distribute the shares traded on the first 2 trading days.

Additional Note:

• After six months from the first trading day, if no trades occur, the seller can determine the offer price at any value but not exceeding the fair value.

 
- A dedicated website is set up for investors to follow the Alternative Trading Board (ATB)
https://atb.dsebd.org
 
- To learn more about the Alternative Trading Board (ATB), please contact us at 09609 100 142 or message us on m.me/midwaytrec142
 
- To open a BO Account at Midway Securities Ltd.: www.midwaybd.com/open-a-bo-account.html

- Interested in shifting to Midway from your existing broker? Click here for easy transfer without selling your shares: www.midwaybd.com/link-account.html