A “Block Trade – Discounted Shares” is a special type of transaction facilitated by the Dhaka Stock Exchange (DSE) to allow companies to sell large volumes of shares without causing major disruptions to the market.
Its key objectives are:
- To reduce excessive price volatility from large sell-offs
- To maintain market order and liquidity
- To help companies quickly complete large equity transactions
📋 Regulatory Requirements
When a listed company intends to sell over 1 million shares, it is required to carry out the transaction through the DSE Block Trade Window, under a controlled discount mechanism.
This ensures:
- Transparency
- Price protection for the open market
- Compliance with DSE and BSEC regulations
These transactions are usually executed at a discounted price below the current market rate, giving investors a price advantage while enabling the seller to offload bulk shares efficiently.
💡 Example Scenario
Let’s say a company wants to sell 1,000,000 shares.
Current market price: ৳100 per share
Discounted offer: ৳80 per share (20% discount)
As an investor, you buy 10,000 shares at ৳80, totaling ৳800,000
If the market price remains ৳100, the market value is ৳1,000,000
➡️ You instantly gain ৳20 per share, or ৳200,000 in potential profit
📈 Why It Matters for Investors
Advantages:
- ✅ Buy below the open market price
- ✅ Capture an instant market premium
- ✅ Reduced downside risk due to discount buffer
- ✅ Conducted under regulated and official procedures
⚠️ Key Considerations
- 🔸 These opportunities are rare and time-sensitive
- 🔸 Typically limited to institutional or high-volume investors
- 🔸 Requires quick access to capital and swift decision-making
🛡️ Regulatory Support & Oversight
This system is strictly supervised by both the Bangladesh Securities and Exchange Commission (BSEC) and the Dhaka Stock Exchange (DSE). All block trades must be executed through official platforms with full compliance to the Bangladesh Securities Act and Capital Markets Conduct Code.
The process includes:
- Transparent pricing
- Third-party clearing and settlement
- Layered approval and documentation
- Oversight to prevent market manipulation or insider abuse
🧠 In Summary (Investor Takeaway)
Discounted Shares = Buy below market value → Immediate upside potential
While not without risk, block trades at discounted prices present strategic entry points for informed investors. These trades allow you to gain early access to large deals under a regulated, low-risk framework.
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Let me know if you’d like a template for follow-up content, like:
- “How to Know If a Block Trade Is Worth It”
- “Step-by-Step: Participating in a DSE Block Trade”
- “Top 5 Block Trade Trends on the Dhaka Stock Exchange”