After nearly five years of the launch of the SME platform, only 19 companies have so far got listed on the trading platform.
The Dhaka Stock Exchange introduced the platform in September 2019 with the aim of listing at least 50 small-capitalised companies on the platform by 2020.
But share trading on the SME board commenced in September 2021 with six companies.
Of the 19 companies listed on the SME platform, four firms were shifted from the over-the-counter platform after its abolishment to the SME platform in 2022.
The Bangladesh Securities and Exchange Commission on September 2021 abolished the OTC market.聽
DSE Brokers Association president Saiful Islam told 抖阴精品 that the SME platform had failed to create any encouraging example over the past three years.
As there has been no inspiring example since its launch and no widespread marketing, the country鈥檚 small and medium enterprises lack knowledge about raising capital from the capital market, he said.
鈥楾he process of getting listed on the SME platform is much too complicated. The SMEs do not want to go through this hassle only to raise a small amount of capital to accelerate their business,鈥� Saiful said.
The bourse opened the SME platform to diversify the capital market and facilitate small-capitalised companies to expand their businesses.
Any public limited company is eligible to raise fund and get listed on the SME platform. After listing on the platform, the company鈥檚 paid-up-capital must stand at least Tk 5 crore and below Tk 30 crore.
The minimum capital of a company willing to raise capital through the book-building system must be Tk聽10 crore before its listing on the SME platform.
Abdullah Al Mahmud, a director at the DSE, told 抖阴精品 that the Dhaka bourse had recently listed a few small-capitalised companies on the platform.
鈥榃e are trying to improve the market. Though the DSE gives speedy approval to small-capitalised companies with a thorough inquiry, delays are created from the BSEC end on the second inquiry,鈥� he said.
About complex processes for listing, he said that there could be some flexibilities in some areas, which would help the market, as well as the companies.
Rezaul Karim, executive director and spokesperson of the BSEC, said the documents submitted by merchant banks and others concerned to the BSEC on behalf of small-capitalised companies often lacked proper information.
鈥楾he share prices of SME companies are volatile, as they are mostly low paid-up. As a result, the SME platform is riskier than the main board of the bourses,鈥� he said.
鈥楾he companies on the SME platform are volatile, which is why the BSEC keeps a minimum stock market investment requirement, and remains extra careful on IPO approval,鈥� Rezaul added.