India and China have launched rival bids for a large stake in Bangladesh’s stock exchange, concerned officials in Dhaka said on Thursday.
This has been viewed as a move to strengthen strategic influence in the region.
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Dhaka Stock Exchange (DSE) chief executive Majedur Rahman on Thursday confirmed India’s National Stock Exchange (NSE) had offered 15 taka (Rs 11.68) per share during a tender process this month for a 25 per cent stake in the DSE’s 1.8 billion shares.
China’s Shanghai and Shenzen stock exchanges made a joint higher bid of 22 taka (Rs 17.13) per share, and also offered technical support worth nearly 37 million dollars,” agencies quoted Rahman as saying.
A DSE official, quoted agencies, saying the Chinese bid was approved by the board but it was refuted by Bangladesh’s financial regulators, triggering allegations of political interfering.
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“The Bangladesh Securities and Exchange Commission (BSEC) declined to give the order to go ahead,” the official said, speaking on condition of anonymity, agencies reported adding, “It also asked the DSE to further scrutinize the proposals.”
The BSEC, however, declined to comment on whether the offer from China had been formally rejected, the agencies report added.
Meanwhile, Bangladesh media has blamed political interference for the alleged favouritism toward India, in spite of the fact that India’s offer is less than what China has offered.