The over-the-counter (OTC) market of Dhaka Stock Exchange is running sluggish since its launching four years back, causing only sufferings to investors rather than relieving them.
“I could not sell even a single share in last three years,” said Alamin, a small investor. “It’s a buyer less market.”
The situation has intensified the sufferings of the investors who fell into the trap of junk shares with the stock market debacle in late 2010, said an analyst.
Only 1.41% or 5.9m out of 417.43m shares have so far been traded as investors showed little interest in the market, a separate trading floor for junk companies.
“I have shares worth Tk1m but failed to sell due to complex system,” said another investor. He alleged that the buyers do not show interest in purchasing stocks due to inconvenient selling procedure. “I put sale order two and half years ago but still remained unsold.”
Under the OTC system, interested buyers and sellers of shares of non-performing and under-performing companies will announce prices and numbers of shares to be traded. Transaction will take place if the announced prices of buyers and sellers match.
In 2012, Bangladesh Securities and Exchange Commission (BSEC) had taken a move to revitalise the market by forming a four-member panel to find ways to develop such market.
“I have no idea about the committee on developing the OTC market,” said Md Saifur Rahman, a member of the panel. “We submitted the guideline to the commission in due time. Implementation of the guideline will depend on the commission.”
Another BSEC official said the commission could not implement it due to shortage of manpower. “Sometimes, internal conflict among the commission delayed implementation of the measures taken,” he added.
In the last four years, 10 companies returned to the main trading floor after converting their physical shares into electronic shares.
Currently, 68 companies are being traded at the OTC market which started with 51 companies on September 6, 2009.
“To protect the investors’ interest, BSEC should reconstruct the board of directors of the companies under OTC market or appoint administrators in the companies,” said Akther H Sannamat, managing director of Union Capital.
He suggested introducing bargaining option to revitalise the OTC market.
An OTC market official said the investors lost their interest in stocks traded under OTC market as they considered those risky.
"Besides, they are confused whether the OTC stocks could be re-sold or not," he said.
But some market analysts termed the move as a ploy to let the rogue companies go off the hook instead of disciplining them.
"It means some companies will get listed with the capital market, make some money and leave the scene," an analyst said. He said OTC market will encourage companies to come to the market, raise money and get out of the market.
