SEC told to speed up efforts for floating of two SoEs

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Shahariar Zaman
Finance ministry Sunday ordered the securities regulator to speed up its efforts to help clear the way for floating of two major state-owned enterprises (SoEs) in the local bourses, officials said.
The directive comes after the government was slammed by the outgoing Dhaka Stock Exchange (DSE) president last week for its alleged apathy to list state-owned companies in the capital market.
The finance ministry on Sunday held a meeting to evaluate the progress of share floatation process of seven state-owned companies including Padma Oil and the Bangladesh Shipping Corporation (BSC).
During the meeting the Securities and Exchange Commission (SEC) was accused of dragging its feet in clearing the listing process of Padma Oil - the country's leading oil distribution company, an official said.
"The SEC was given 10 days to submit a report on Padma Oil in January this year but a committee led by its chairman has failed to submit the report till today," he said.
A SEC representative told the meeting that the regulator would submit the report on Padma Oil, a venture of the energy ministry, within a very short time.
The energy ministry cannot take any decision on floatation of the highly profitable company in the stock market without the SEC report, the official explained.
In February, the BSC sought a waiver on audit reports on its existing fleet as preconditions to floating shares, but the securities regulator has not yet made a decision on the tricky issue.
The Finance Ministry has now asked the SEC to make its decision within this week. "We know that that the SEC is undermanned. But it cannot be an excuse to keep on delaying key decisions," said the finance ministry official.
Officials said the seven companies were supposed to float shares by April under an inter-ministerial decision taken in January. But lack of efforts by the SEC delayed the process, they alleged.
The five other companies are Karnaphuli Paper Mills, Bangladesh Insulator and Sanitary Ware Factory, Chatak Cement, Bangabandhu Bridge and Bangladesh Cable Industry Limited.
Bangladesh Cable, a company of Post and Telecommunications ministry, has appointed a chartered accounting firm to update accounts as part of its move to float shares, said another finance ministry official.
Karnaphuli Paper Mills, Bangladesh Insulator and Sanitary Ware Factory and Chhatak Cement -- all controlled by the Industries ministry - have also made progress in offloading shares, he said.
Bangabandhu Bridge will sell Tk two billion bonds at the bourses and Investment Corporation of Bangladesh (ICB) is working as its issue manager, he added.