PART-2

Step 5: Submit application form for approval along with relevant Documents.

Step 6: Pay service charge and Advance Income Tax (AIT) (if applicable) through Pay Order in favor of 'Dhaka Stock Exchange Limited' at the time of receiving approval letter

Service Charge: 0.05% on the closing price of the securities to be transferred or Taka 50.00 (fifty) whichever is higher. The closing price of the securities prevailing on the day of approval accorded by the Exchange shall be taken as the price of the securities for the purpose of such service charge.

Example: Mr. X wants to transfer 10,000 shares of ABC Company Limited and closing price per share of ABC Company Limited is Tk. 30. How much service charge has to pay by Mr. X?

Total Market Value of transferred shares = (No. of shares * Closing Price)

= (10,000 * 30)
= Tk. 300,000

So, Service Charge has to pay by Mr. X = (Total Market Value * 0.05%)

= (300,000 * 0.05%)
= Tk. 150

Therefore, Mr. X has to pay Tk. 150 as service charge.

Advance Income Tax (AIT): 5% on Capital Gain of transferred shares/units

Example: Mr. X is a sponsor director of ABC Company Limited who wants to transfer 10,000 shares and closing price per share of ABC Company Limited is Tk. 30. Acquisition Cost (weighted average cost) per share is Tk. 14. How much Advance Income Tax has to pay by Mr. X?

Total Market Value of transferred shares = (No. of shares * Closing Price Per Share)

= (10,000 * 30)
= Tk. 300,000

Total Acquisition Cost of transferred shares = (No. of shares * Acquisition Cost Per Share)

= (10,000 * 14)
= Tk. 140,000

Total Capital Gain of transferred shares = (Total Market Value � Total Acquisition Cost)

= (300,000-140,000)
= Tk. 160,000

So, Advance Income Tax has to pay by Mr. X = (Total Capital Gain* 5%)

= (160,000 * 5%)
= Tk. 8,000

Therefore, Mr. X has to pay Tk. 8,000 as Advance Income Tax (AIT).

Note: AIT is applicable for Sponsor/Director/Placement Holder.

**Step 7: **Submit declaration:

Submit declaration form to BSEC and Exchanges prior to execution of transfer (in case of sponsor/director/placement holder)

Declaration for buy/sell/transfer of shares/units as per Listing Regulation 34 (1) & (2):

Declaration form for Sponsors or Directors
Declaration form for Placement Holders

Declaration forms are available in the link http://www.dsebd.org/share-transfer.php .

**Step 8: **Execute Transfer:

Go to concerned Depository Participant (DP) to execute the transfer and do the formalities with them. The execution shall be completed within 30 (thirty) working days from the date of approval or any days mentioned in the approval letter.

Step 9: Submit Completion Report:

Submit completion report along with relevant documents relating to the said transfer within 7 (seven) days of such execution.