Over-the-Counter (OTC) means the facilities provided by an exchange for the purpose of buying or selling of unlisted or delisted securities from the stock exchanges. The OTC Market provides an alternative to stock exchange listing for securities of issuers that either choose not to be listed on Dhaka Stock Exchange or not to meet the relevant listing requirements. The term “OTC Securities” is a catch –all phrases for any security that is not listed on stock exchange
Dhaka Stock Exchange Ltd. provides Over-The-Counter (OTC) facilities for transaction of share of companies as per SEC’s directive no. SEC/CMRRCD/2001-16 dated 06 September, 2009 transaction procedure of which is followed by Securities and Exchange Commission (Over-the-Counter) Rules, 2001.
Initially with 51 companies, Dhaka Stock Exchange Ltd. Over-the-Counter (DSE-OTC) has started its journey on October 01, 2009 as per SEC Directive # SEC/CMRRCD/2001-16/168 dated 01 October, 2009. Among 51 issues, trading of the shares of United Commercial Bank Ltd. has been resumed in the main market of DSE from 13 June 2010 under "Z" Category as per SEC Directive No. SEC/SRMIC/94-205/369 dated June 08, 2010. As per directive # SEC/CMRRCD/2001-16/65 and SEC/SRMIC/94-198/623 dated 28 September 2010 & 05 October 2010 there are 29 (twenty-nine) more companies have been added with the existing OTC instruments with effect from 01 October and 20 October 2010 respectively.
Out of 25 issues (which have been delisted from the main market for failure to demat their securities within 30 September 2010) only 10 issues are declared eligible for demat securities by Bangladesh Securities and Exchange Commission (BSEC) and subsequently these are transferred to the main market, as the securities of those companies have been dematerialized. GMG Industrial Corporation Ltd. delisted from DSE OTC market effective from June 20, 2011 as per their application in this regard. Thus, total number of securities stood at 68 (sixty-eight) under OTC facility as on 31 December 2011.
The Board of Directors of DSE in its 769th meeting held on April 30, 2014 has decided to de-list the shares of Padma Cement Limited from the Exchange with effect from May 7, 2014 in accordance with the Court Order dated March 13, 2014 in the Company Matter No. 53 of 2012 following its liquidation. Thus, total number of securities stood at 67 (sixty-seven) under OTC facility as on 7th May 2014.
The Board of Directors of Dhaka Stock Exchange Ltd. has approved the application of the wata chemicals Ltd. to place its share from Over the Counter(OTC) Market to main market with effect from 14 May, 2014.
Thus, total number of securities stood at 66 (Sixty-six) under OTC facility as on 14th May, 2014
The Board of Directors of DSE in its 880th meeting held on December 11, 2017 has approved the application of the Alif Industries Ltd. to place in the main market from the Over the Counter (OTC) Market as re-listing. The trading of shares of Alif industries Limited will be Launched on December 28, 2017.
Thus, total number of securities stood at 65 (Sixty five) under OTC facility as on 28th December, 2017.