Transactions of odd lot shares have now become a difficult job for the investors due to some technical difficulties in the automated trading system of Dhaka Stock Exchange (DSE).
According to brokerage house sources, DSE restricted the normal trade of oddlot shares through amending the 'Dhaka Stock Exchange Automated Trading Regulations, 1999' in late-October of 2009.
Under the amendment, no broker is allowed to carry out transactions in the odd lot market by breaking market lot from any of the securities and none is allowed to place buy order of odd lot securities in excess of the number of securities sufficient enough to render his possession of odd lot securities into market lot.
The restriction has reduced the transaction of odd lot shares on DSE to 0.05 per cent till August of 2010 from 0.016 per cent of 2009.
Investors alleged that they had been facing the problems ahead of the amendment as prices don't match between the buyers and sellers.
"Under the existing system, a huge number of odd lot shares remain in the portfolios of investors, so without bringing a unified system, the problem will never end," Asadur Rahman, an investor said.
There must be a consensus that a listed company should not issue odd lots while issuing rights or bonus or preference shares, another market operator said.
He said out of 20,000 investors in a brokerage house in the DSE, there remains odd lot in every account-holders' accounts.
The odd lot shares are being added with the total shares of the listed companies every year due to issuance of rights, bonus and preference shares.
"So, the number of odd lot shares is rising day by day and the stock market is affected due to the restriction," a source of a DSE brokerage house told the FE.
He said the market is already affected due to shortage of quality scrips, but restriction on odd lot shares is only aggravating the situation.
Source: http://thefinancialexpress-bd.com
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