Dhaka Stock Exchange (DSE) – the country’s prime bourse – is set to offer space on its webpage for commercial advertisements in an effort to boost income.
After fixing the advertisement rates within the next three months, interested companies will be able to advertise on the DSE website.
These ads might particularly be aimed at companies in the financial sector – an initiative that will increase its profits and also help attract strategic partners.
According to the Demutualisation Act 2013, stock exchanges have to pick up strategic partners within three years from the date of demutualisation. Failing to do so, they can apply to Bangladesh Securities and Exchange Commission (BSEC) that can extend time for one year, considering reasons behind the delay.
“We are going to post commercial advertisement on the DSE website within two-three months,” said MD Shakil Rizvi, director of Dhaka Stock Exchange.
“Currently, DSE is working on fixing advertisement rate. Hopefully, it will be done soon.”
Since July 1, the prime bourse already has posted commercial ads provided by Google AdSense, a programme run by Google, which allows publishers in the Google Network of content sites to serve automatic text, image, video, or interactive media advertisements.These adds generate revenues for the website.
“We have applied to the Google for opening accounts to display ads, and as part of that process, some ads provided by the Google management have already been displayed on the website,” a DSE official, said, asking not to be named.
He said displaying more ads will start after getting nod from the Google authority.
“Strong financial footing is required of a demutualised stock exchange to woo strategic partners. Otherwise, they will not be interested to invest,” Khwaja Ghulam Rasul, director of DSE, told the Dhaka Tribune.
As part of making the stock exchange profitable, DSE decided to offer commercial ads to maximise its annual profits as higher EPS would help draw strategic investors, he said.
According to the latest financial statement of 2013-14, DSE’s income stood nearly at Tk134 crore. In 2012-13, it was Tk1,15.5 crore.
The earnings per share (EPS) were recorded at Tk0.74 against Tk0.64 a year ago. While the Net Asset Value (NAV) per share stood at Tk10.93 at the end of June 2014, up from Tk10.19 a year ago.
According to a DSE high official, the bourse did not declare dividends for its share holders in the fiscal year 2014 – the first financial year after demutualisation.
On November 22, 2013, DSE and Chittagong Stock Exchange had turned into demutualised exchanges as the country’s twin bourses get certificates from the Registrar of Joint Stock Companies and Firms (RJSC).
In line with the demutualisation scheme, 60% share of Dhaka Stock Exchange have been kept in a block account for strategic and institutional investors and the general public while the rest 40% are allotted to existing shareholders.