India and China put up bids in the Dhaka Stock Exchange (DSE) as the struggle for supremacy in South Asia took a new turn in the Bangladesh stock exchange.

The bids immediately became the centre of controversy as India's National Stock Exchange had offered 15 taka ($0.18) per share for a 25 per cent stake and China's Shanghai and Shenzen stock exchanges made a joint higher bid of 22 taka ($0.26) per share, or $122 million.

Dhaka Stock Exchange (DSE) chief executive Majedur Rahman confirmed the bids to AFP.

The Chinese bid also offered "technical support worth nearly $37 million", however, Bangladesh's financial regulators rejected the Chinese bid.

"The BSEC (Bangladesh Securities and Exchange Commission) declined to give the order to go ahead," an official told AFP on condition of anonymity. 

Saifur Rahman told AFP it could "always override the exchange's decisions".

"No final conclusion has been drawn yet. The auction process is still at an early stage," he said.

Bangladesh has become an important strategic centre for both China and India with both President Xi and PM Modi having visited the country in the last two years.

President Xi signed deals worth more than $20 billion in 2016 with PM Modi who is believed to be at good terms with Bangladesh PM Sheikh Hasina has given large credits to the country and approved multi-billion dollar infrastructure contracts for its "natural neighbour".

According to reports, the combined market capitalisation of companies listed on the Dhaka stock exchange is over $40 billion.

Bangladesh has become an important centre for both China and India with both President Xi and PM Modi having visited the country in last two years.